How You Can Simply Outperform Mutual Funds
How You Can Simply Outperform Mutual Funds
1. If trouble is detected in the stock/market you either take
your profits and get out, or sell short. On the other hand,
Mutual Funds can not exit the market quickly since they own huge
amounts of shares, and unloading them to the market can be
disastrous. Consequently, unlike individual investors they
either have to stick to their positions in downtrends or suffer
a huge loss in market trend changes while exiting.
2. By law, Mutual Funds can not sell short more than a certain
percentage of their assets, whereas you can sell short in bear
markets and grow rich in a faster pace while big institutions
are still unloading their stocks to the market.
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