How to Choose Mutual Funds

EPISODE · Jun 15, 2007 · 33 MIN

How to Choose Mutual Funds

from Money Guy Show · host Brian Preston and Bo Hanson

First you guys need to know my thoughts on what is known as Efficient Market Theory Efficient Market – Since everyone has the same information about a stock, the price of a stock should reflect the knowledge and expectations of all investors. The bottom line is that an investor should not be able to beat the market since there is no way for him/her to know something about a stock that isn’t already reflected in the stock’s price. I feel that this Theory holds true for Large Cap. US Companies. There are really only 1,000 Large Cap Companies (Cap Value > $10 Billion). Meanwhile there are pundits, analyst, and advisors like myself on every street corner to evaluate these 1,000 stocks. With the vast amounts of information and the speed that information now reaches us through the Internet, Cable Business Channels, AM Business Talk Radio how could you know anymore than anyone else? For more information, visit the show notes at http://www.moneyguy.com/2007/06/how-to-choose-mutual-funds   For more information, visit http://www.moneyguy.com/2007/06/how-to-choose-mutual-funds  Learn more about your ad choices. Visit megaphone.fm/adchoices

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How to Choose Mutual Funds

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