NASDAQ 100

A Better Tech Fund

A young Wasatch entry makes its mark with IT and health stocks

 
Most mutual fund investors should own at least one tech fund. After all, tech is an area that can rise suddenly and sharply, and you don’t want to miss out.
 
Be alert, though, to expense ratios. Typically, smaller-cap and specialty funds—which encompass tech funds—as well as international funds have higher expense ratios than domestic, large-cap, or bond funds. And remember, the expense ratio remains constant whether your fund soars or tanks. One of our goals, with tech as with all funds, is to ferret out those with expense ratios below the category average.
 
This issue we’re dropping one of our two tech funds, Kinetics Internet, in part because of its above-category average expense ratio.
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Good Sports

The best international soccer clubs can help you meet your investment goals

 
For investors who also are avid sports fans, there is something particularly appealing in the idea that you can make big money by investing in a big sports franchise. Not that every sport offers such an opportunity—you might have to forego, say, football (American-style), baseball, and basketball. So what’s left? If you’re at all up on the international sporting scene, you’ve guessed it: soccer.
 
Soccer, hands down, is the world’s biggest sport, attracting the most fanatic fans and garnering more television viewers worldwide than any other athletic pastime. While soccer clubs have struggled to gain market share in a saturated U.S. entertainment market, they have established a dominant position in the European and Asian entertainment media and represent some of the world’s most powerful brands. Many, though not all, are publicly traded, and the best positioned are using their on-field wins to become successful media companies with considerable investment appeal.
 
Not every soccer club, of course, is a smart investment.
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EFTs: Funds for All Reasons

Compared to mutual funds, you get the same bang for a less expensive buck

 
If you’re like many investors, you’re an old pro at buying individual stocks. You’re equally comfortable buying mutual funds. You may be less knowledgeable, though, about a third category—exchange traded funds, or ETFs. And these are worth learning about, because ETFs can supplement your other investments in some intriguing and profit-enhancing ways. In particular, they offer three sterling virtues: easy diversification, a low cost structure, and a way to hedge (see box).
 
ETFs, the great majority of which trade on the American Stock Exchange, are investment vehicles that track with near perfect fidelity the up and down moves of a particular stock index or sector. Thus, like a mutual fund, they give you a quick way to diversify your holdings: with one trade you own a whole bunch of equities, without having to research individual stocks or worry about an individual negative surprise in earnings.
 
One of the best-known and most actively traded ETFs tracks the 30 stocks in the DJIA. It is called “Diamonds” and trades on the Amex under the symbol DIA.
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A Day at a Time: 04-09-09

During the stock market's rally over the last four weeks from 12-year lows, we've increasingly focused on the next major test: how well the stock market deals with bad news and news that's not only bad but worse than expected.

 

We're taking it a day at a time while looking and hoping for a generally flat-to-rising trend.

 

The stock market was weak on Monday and Tuesday as investors fretted about upcoming reports on first-quarter earnings. But then stocks stabilized yesterday and jumped today. As of now, there's little doubt that the reported earnings will be generally dismal. But there's reason to hope that stocks already have discounted that and will stand their ground if the news is merely bad, and even climb if it's not as bad as expected.

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Market Update 07-21-09

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Market Update 07-06-09

Short-Term Key: Negative
Long-Term Key: +48Read more...

Market Update 11-04-08

As Americans cast their ballot on Election Day, the markets are continuing last week's gains and rallying in anticipation of more certainties. No matter who wins the White House, investors will have a clearer idea of the types of policies that will be pursued in the next four years. As poorly as President Bush is currently viewed by Americans, his successor will inject a boost of confidence into the economy for simply not being Bush and for representing change.

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Market Update 10-28-08

It was another tumultuous ride on Wall Street last week. Disappointing third quarter earnings reports from major companies such as Boeing and AT&T worsened investor pessimism and led to another stock price tumble, wiping out gains last week. All the major U.S. indices took deep dives before today's rally the Dow was down over 5%, the S&P nearly 7%, and the Nasdaq almost 10%.

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Market Update 10-28-08

It was another tumultuous ride on Wall Street last week. Disappointing third quarter earnings reports from major companies such as Boeing and AT&T worsened investor pessimism and led to another stock price tumble, wiping out gains last week. All the major U.S. indices took deep dives before today's rally the Dow was down over 5%, the S&P nearly 7%, and the Nasdaq almost 10%. These losses seemed not too bad in contrast to what occurred in foreign markets. The DAX dropped 10% and the Nikkei 225 dropped an astounding 20% in one week as fears grew that recessions elsewhere in the globe will hurt Asian exports. 

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Market Update 05-23-07

  (NO SALES, NO ARCHIVE...

Image by Getty Images via Daylife

Volume 4, Number 21 

May 23, 2007 

Record new highs in the stock market are starting to become commonplace these days. And averages that haven't set new records yet are close. The S&P 500, for instance, continues to flirt with its record highs set way back in March 2000, although so far it has yet to top that high water mark. Yesterday the Nasdaq 100 closed at a six-year high, although at its current price around 1920 it remains far below its bubble peak near 4700.Read more...