In edited excerpts from his original article* Joshua M. Brown (www.TheReformedBroker.com) maintains that when a fund brochure says:
It really means: Leveraged to the hilt.
2. Global growth
It really means: We’ll chase stocks for you in whichever country is most overheated right now.
It really means: A basket of government-subsidized experiments and some GE shares.
4. Deep value
It really means: We will invest in sewing machine and typewriter companies.
5. Socially responsible
It really means: No such thing – all corporations are evil.
It really means: We will basically buy the index and go golfing.
It really means: Uses exotic derivatives you’ve never heard of.
8. Aggressive growth
It really means: Collection of Chinese gaming stocks and New Jersey biotech startups.
9. Moderate allocation
It really means: Gutless fund manager.
It really means: We will throw darts.
It really means: No need to spread it out: send us everything you have.
– The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.
– Permission to reprint in whole or in part is gladly granted, provided full credit is given.
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