The blind squirrels big day, by golly! wrote:
[quote]Racket wrote:
Wait, am I reading this right? The average annual return is negative for almost all his funds?
I think the point is, as far as I can fathom it, is that the markets have been wrong and since they have been wrong for so long, his fund has unfairly suffered. But that's gonna change, by golly. Sure, his signature growth fund has managed to lose over 35% of it's value since its origin some 18 years ago, but that just goes to show you how misguided these markets have become.
And besides, how many funds can you name that have only one star rating by Morning Star?
Well, now you can name five, and there all his!
“Last week, the stock market enjoyed a typical clearing rally from an oversold low – ‘fast, furious, and prone to failure.’ This presents a good opportunity for investors to reduce positions that they would not be able to tolerate through a complete market cycle, with the S&P 500 only about 5% below a record high.
“Let me preface this analysis by stressing again that my intention is not to drive investors out of well-considered investment plans. There is nothing wrong with a buy-and-hold approach provided investors are aware of how strong the impulse is to abandon that strategy only after deep declines. I appeared briefly on CNBC last week to discuss recession risk, but beforehand, I was asked to put a positive tone on my comments, to which I responded – ‘Look, my interest is in making sure that investors have positions that they are able to hold through the complete cycle… If they’re carrying more risk than they could endure through the course of a bear market, they should cut back now. I’m not going to wave my arms around about doom and gloom, but I think it’s a crucial time for investors to think about the risk they’re taking, and if you don’t want me to say that, please don’t have me on.’ Well, I went on, and though we ran short of time, that’s still my message.”
John Hussman, 12/4/2007