Precious Metal Funds: Precious metal funds invest in gold, silver, and platinum. Gold and silver often move in the opposite direction from the stock market, and thus these funds can provide a hedge against investments in common stocks.
Sector Funds: Mutual funds were actually invented so that investors with limited means could pool their money and thereby purchase a broadly diversified portfolio. That is why sector funds seem so definitely odd!
By specializing in the stocks of a single industry like technology, health care or financial services, these funds take the time-tested notion of diversification and toss it out the window.
Bond Funds: Bond funds invest in corporate and government bonds. A common misunderstanding among investors is that the return on a bond fund is similar to the returns of the bonds purchased.
One might expect that a fund that owns primarily 8 percent-yielding bonds would return 8 percent to investors. In fact, the yield from the fund is based primarily on the trading of bonds, which are extraordinarily sensitive to interest rates.
Long-Term Bond Funds: Long-term bond funds performe well when interest rates came down. But when you buy funds, the goal isn’t simply to own funds that might perform well. Rather, the idea is to build a portfolio that includes a collection of funds that together generate great returns while providing you with a smooth ride through turbulent markets.
On that count, long-term bond funds fail. When stocks fall, sometimes it’s because interest rates are rising.
But under that scenario, long-term bond funds also will start losing, and they will not provide much protection for stock investors, so they don’t seem like a useful addition to a well-rounded portfolio of stocks and bonds.
Balanced Funds: Balanced funds combine stocks and bonds, usually in a 60-40 mix. The stock portion often is invested in blue-chip shares, while the conservative segment is typically given over to longer-term bonds.
The idea is that balanced funds give you one-stop shopping. But they fall far short of that goal. What if the 60-40 mix is too aggressive or too conservative for you?
For those considering just holding one fund to achieve their goals, buying a balanced fund is tantamount to going into a shoe store and buying a pair of shoes without worrying about the size!
Money Market Funds: They are essentially mutual funds that invest solely in government-insured short-term instruments.
These funds nearly always reflect the current interest rates, and rarely engage in interest-rate speculation.
Bear-Market Funds: Market timing is bad enough! Bear-market funds take that mistake, and make it worse!
These funds bet that either individual stocks or the entire market will fall. This is a loser’s game, because share prices go up over time!
Convertible-Bond Funds: Convertible bonds are bonds that can be swapped for the issuing company’s stock at a predetermined share price. So what are convertibles, a stock or a bond? Therein lies the question!
Convertibles may appeal to bond investors who are so nervous they can’t bring themselves to buy a pure stock fund but want some backdoor stock-market exposure.
But for those who already own regular stock and bond funds, it is difficult to see much reason to buy these funds.
Load Funds: Mutual-fund sales commissions are used to compensate brokers who sell funds. Don’t need a broker’s advice? There is no reason to pay a load!
High-Expense Funds: At the super market, price may bear some relationship to quality. But when it comes to fund management, you don’t get anything special for paying a lot in annual expenses!
In fact, high-expense stock, bond and money-market funds tend to lag behind their low-cost competitors. As a result, you would be well advised to stick with stock funds with expenses below 0.9%, bond funds that charge less than 0.7% and money funds that levy less than 0.5%.
Commodity Funds: Commodities mutual funds are those investing in certain designated real assets or their derivatives like futures contracts (instruments that facilitate investment in commodities). The commodities or the derivatives are traded for maximizing profits.
All said and done there are no commodity mutual funds in real terms and all those trading in commodities are hedge funds (hedge funds are for big time investors who can pool in excess of $1 million for the purpose of trading in commodities).
In a way commodity mutual funds are scaled down versions of hedge funds that provide a chance to retail investors to take a look at commodities market who otherwise were not able to.
Aggressive Growth Funds: Aggressive growth funds aim to maximize capital gains (buy low and sell high). These funds may leverage their assets by borrowing funds, and may trade in stock options.
If the market is going up, these are the funds that will benefit the most. Conversely, aggressive growth funds are the ones hardest hit in bear markets.
Growth Funds: Growth funds are similar to aggressive growth funds, but do not usually trade stock options or borrow money with which to trade.
Most growth funds do a little better during bull markets, but do a lot worse than average during bear markets. Just as in aggressive growth funds, growth funds are not aimed at the short-term market timer.
Growth-Income Funds: Growth-income funds are specialists in blue chip stocks. These funds invest in utilities, industrials, and other seasoned stocks.
They work to maximize dividend income while also generating capital gains. These funds are suitable as a substitute for conservative investment in the stock market.
Income Funds: Income funds focus on dividend income, while also enjoying the capital gains that usually accompany investment in common and preferred stocks. These funds are particularly favored by conservative investors.
International Funds: International funds hold primarily foreign securities. There are two elements of risk in this investment:
The normal economic risk of holding stocks; as well as the currency risk associated with repatriating money after taking the investment profits.
These funds are an vital aspect of many portfolios, but any individual fund may prove too volatile for the average investor as their sole investment.
Global funds: International funds invest exclusively abroad, while global funds combine domestic and foreign shares in the same portfolio.
Regional Funds: These funds confine themselves to a single foreign region, like Latin America, U.S.A., Europe or Asia.
When you buy one of these funds, you are betting on a single part of the foreign markets. Do you really know enough to make that sort of bet?
Asset Allocation Funds: Asset allocation funds don’t invest in just stocks. Instead, they focus on stocks, bonds, gold, real estate, and money market funds. This portfolio approach decreases the reliance on any one segment of the marketplace.
Cash IS a Position!
When you can’t find trades which meet your criteria, remember that cash is a position.
In a day and age of nearly instant executions and dirt-cheap commissions, it’s extremely easy to overtrade. Throw into the mix the number of days when we get narrow trading ranges and pending news (like major afternoon earnings announcements or Fed days), and boredom becomes a huge factor to contend with as a trader.
With so many great trading tools at our disposal, we can easily start feeling an obligation to put them to use and just be active. I know there have been plenty of times when I have not seen the high-quality setups I prefer to trade, yet I stayed at the PC because there wasn’t anywhere else I needed to be. Next thing I knew, I was pushing buttons left and right to create some activity and interest for myself. The result? It’s not hard to guess – the majority of those times I paid for it and wondered why I felt such an obligation to “be positioned.”
After some thought, I finally realized that CASH IS A POSITION! Moving to cash when I didn’t see the optimal trading conditions for my style was in fact taking a position. My position was safety when my certainty level was below what it needed to be in order to trade.
Let me encourage you to do the same thing! You don’t always have to be trading something (even if you’re a scalper). The current market environment may be a perfect example for you. If you’re feeling like the market is too extended in the near term to place new buys, yet you are not willing to start short selling, then remember that cash is an alternative and just step aside. You can still keep an eye on the market, but it may also be a perfect time to tend to other matters so that once your trading activity picks up you are fully focused on the task at hand.
There are times when either the market is giving signals of uncertainty or you may just feel out of sync with things, and during those times it’s best to just move to cash and wait for some clarity. Be bold enough to take a position in cash when your signals are telling you that the sidelines are the place to go!
The Chuck Hughes Advisory
Making money on the stock market is still perhaps the best way to ensure long-term financial wealth and the Chuck Hughes Advisory service is one of the most efficient ways to achieve wealth. It isn’t enough in this modern age to simply try to avoid a ripoff, or to seek out an advisory professional you may find in the yellow pages. Financial services are in abundance, but few have been able to match Chuck Hughes’ success, or develop a system like his GPS Advisory Service.
What is the difference between the Chuck Hughes Advisory and GPS Advisory Service?
Basically, the two are the same. The terms are interchangeable. If you hear someone discuss the GPS Advisory Service, but disregard Chuck Hughes Advisory, then they may be attempting a ripoff, or simply uninformed. Use caution moving forward. The basic concept of the Chuck Hughes Advisory, or the GPS Advisory Service, is trend following.
Many of today’s young, aspiring traders want to make the next big profitable trade, and they look to you, the new investor, as their financial support. While this isn’t necessarily a rip-off in the making, it puts you at risk. The Chuck Hughes Advisory, and any advisory professional who utilizes this system, is a safe bet, not a ripoff. Check out Chuck’s real time trading profits at www.chuckhughes.com.
So whether you hear someone mention the GPS Advisory Service or the Chuck Hughes Advisory service, they are one in the same. The GPS Advisory Service stands for Global PowerTrend System.
Getting the inside track with the Chuck Hughes Advisory
The GPS Advisory Service measures current trends in the global markets. The modern economy is built around a global system. Too many advisory professionals will try to encourage you to focus on the American system only. This is limiting, though not a rip-off. Don’t let yourself be corralled into limits. Ask your advisory professional to discuss the GPS Advisory Service with you. If they refuse, then look for another financial services company to serve your needs.
If they are unaware of the Chuck Hughes Advisory service, then run for the hills. There’s no reason that an advisory professional would not know about Chuck Hughes or the GPS Advisory Service. Wherever you look today, there are people aiming for the ripoff, the perfect score. Being the victim of a rip off is no one’s goal, but they happen all of the time. That’s why the more you know, the more protected you are.
The Chuck Hughes Advisory allegations
The more research you do, the more you will find posts across the internet that prove the Chuck Hughes Advisory, or the GPS Advisory Service, is not a ripoff. The Chuck Hughes trading advisory service maintains a trade profit record at www.privatewg.com If you log on to www.privatewg.com you can see the Chuck Hughes advisory service 5 year profit record and you can verify that this is not a Chuck Hughes ripoff. Don’t be fooled by an advisory professional who tells you the Chuck Hughes Advisory service doesn’t work. It does.
Let’s talk more about rip-off claims and the problems people face with a ripoff scam. No one wants to be on the wrong end of a rip off. Your money is hard earned and it deserves to be protected, so be careful when choosing an advisory. There are ripoff report listings maintained by state consumer agencies that help you avoid being the victim of a rip-off. These ripoff report posts contain comments and complaints from ripoff victims about different companies and advisory professionals. You simply won’t find Chuck Hughes’ name on these ripoff report posts anywhere.
Look for answers from an advisory professional
When you want to build a diversified trading strategy, there will be a lot of options. The number of options will increase your risk of becoming a victim of a ripoff. Don’t stand idly by; ask questions of your advisory professional. If they want to avoid the topic of the Chuck Hughes Advisory service, or act coy in any way about the topic, think ripoff and move on.
There are many advisory professionals out there so you don’t need to be a victim of a ripoff. If you feel as though you have already become a victim of a ripoff, then file complaint with your state’s securities office on the ripoff report. Your diversified trading strategy will be your lifeline to the future and should be taken seriously. A ripoff report is just another tool to help you fight for the best diversified trading strategy you can find.
Why is Chuck Hughes so good?
When it comes to an advisory report or diversified trading strategy, Chuck Hughes is one of the best in the business. The reason is simple. The Chuck Hughes system is simple. The idea of following trends, rather than predictions, earns clients more money in the long-term. When you’re planning your diversified trading strategy, Chuck Hughes is absolutely a name that should you should keep in mind.
Chuck Hughes has been in the advisory business for years and his proven trend following system works. When you build a diversified trading strategy, the notion of making money from more than one strategy makes sense. A diversified trading strategy says it all in the name. Diversify among many strategies.
Any advisory professional who knows Chuck Hughes, and knows that his system works, is the right professional to help you get your diversified trading strategy in order.