Tech Funds Lead The Pack ... AGAIN!
-- January 27, 2003
The Chinese are kicking off the year of the Ram, but for the past three years on Wall Street, it's been the year of the Dog. Just take a look at the latest analysis from Weiss Ratings, our sister company. Stock mutual funds have reported losses for three consecutive years. In 2002, mutual funds investing in stocks plunged an average of 19.22%. In 2001 and 2000, stock mutual funds lost an average of 12.5% and 4.5%, respectively.
Technology funds have consistently been the biggest losers. For the past three years, 99.3%, 98.6%, and 99.4% of all technology funds had negative returns. That means your odds of losing money on a technology fund were nearly 100% guaranteed in each of these years. In the next phase of the bear market, which we are entering right now, we expect to see blue chip stocks and mutual funds get dragged down right along with the technology stocks.
On the other hand, last year's biggest winners -- bond funds and gold funds -- look to be headed even higher as the bear market drags on. In fact, recommendations made in Safe Money Report in these investment categories (including mutual funds and stocks) have open profits of 20.5%, 22.3%, 81.2%, 102%, 122%, 583%, up to 775% as of Jan. 27!
related article: 90% of Stock Mutual Funds Suffer Losses in 2002