Three years ago this week the S&P 500 index hit a low. After hitting a high of 1525 in March 2000 the index had declined 46% to 965. Mutual fund marketing departments went into hibernation.
This week, after mustering some positive momentum, the S&P is at 1215 and the lights are back and the presses are ramping up again.
Few actively managed mutual funds have beat their benchmarks in the past ten years and consolidation is rampant in the industry. Even though the market has recovered slightly we’ve seen approximately 500 mutual funds a year consolidate or just go away during the past three years.
Advisors, investors and the media see the numbers and more seem to be touting the advantages of Exchange Traded Funds (ETFs).
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.