Trading costs have predictive power

Trading costs have predictive power - InvestmentNews

It's the case of the dog that wasn't barking......mutual fund costs that are not fully disclosed but have a major impact on your long term return - Trading Costs.

This article is about a study showing that trading costs run higher than the expense ratio of most mutual funds and that the higher the trading costs the lower the return (on average).

Again, costs matter and knowing where the costs are is a major factor in determining your long term return.

The main problem with Trading costs is that they are hard to figure out given that they are not disclosed in a simple manner.

Scott Dauenhauer, CFP, MSFP, AIF
949-916-6238
www.meridianwealth.com

Morningstar.com - How Much Does Your Fund Really Cost?

Morningstar.com - How Much Does Your Fund Really Cost?

Good article on how fees should really be disclosed. I wholeheartedly support Morningstar's proposal and have been advocating it for years.

Scott


Scott Dauenhauer, CFP, MSFP, AIF
www.meridianwealth.com
949-916-6238

How Should Borrowers Deal with Mortgage Brokers?

Jack Guttentag tells you how to deal with a mortgage broker and I guarantee you that you've never heard this before from anyone.

Jack started an association of mortgage brokers who disclose their fees upfront.....imagine that!

Scott Dauenhauer, CFP, MSFP, AIF
www.meridianwealth.com
949-916-6238

A Veiw of the Economy from Abroad

Ben Stein is bullish on the Global Economy and the US in general.

This article tackles the "threats" that we keep hearing about (Subprime, rising rates, Leveraged Buyouts) and whether they have the ability to take down the market.

This is an interesting, short article that I think you really need to read.

Scott Dauenhauer, CFP, MSFP, AIF
www.meridianwealth.com
949-916-6238

Profit From Higher Long-Term Rates

Jeremy Siegal's latest column talks about the rising interest rate environment and its affects on the global economy and markets.

What follows are a few excerpts:

"Since the middle of March, the world’s bond markets have witnessed a sharp increase in long-term interest rates.

The ten-year U.S. treasury bond has risen from 4.50% to 5.15% and reached as high as 5.30% on June 12. Rates in Europe have increased even more than the U.S., as the ten-year German bond has risen from 3.90% to 4.70% and the U.K. bond from 4.75% to 5.55%."

"I believe the real estate slowdown will not significantly damage the rest of our economy. The upward revision in growth has already brought about adjustments in the capital markets. These adjustments will actually help the Fed control the inflationary pressures and make it less likely, in my judgment, that it will raise rates in the future."



Scott Dauenhauer, CFP, MSFP, AIF
www.meridianwealth.com
949-916-6238