Think the Bear market will be over by June 1st, 2009? Yes I do...I'm not an investment professional...I'm just using a little common-sense and current economic observation with some other published professional advice thrown in for good measure...given the fact that the new U.S. President will be in office for six (6) months by then and things will be starting to get on track economy-wise, also considering that many employers currently surveyed have claimed they will start hiring again by mid-year, and historically speaking the stock market heats up three to nine months prior to the economy hitting rock bottom (some economists currently believe the bottom will be reached by 20NOV2009). Then take into account the late great investor Sir John Templeton's advice to "Buy at the point of maximum pessimism" and viola...this equates to somewhere between March and August (I'd suggest May 2009) is when one should make their play. Again, history has shown that the market in stocks moves up fast and far at the end of bear markets...so go for aggressive funds...here are BUCKzology's Best Fund Picks For 2009:Bridgeway Aggressive Investors 2 (BRAIX) Houston,TX - long term record of wins, this fund lost 57% -- 5% per year better performance than S&P (18% more than S&P 500-stock index in 2008). Investors have received an annualized 12% return since inception in 1994 on the "Investors 1" fund which is now closed...but consider the same techniques will be used for this fund.
CGM Focus (CGMFX) Boston,MA - lost 50% in 2008; long-term record for the last ten years 18% annualized return; average 19% per year better performance than S&P.
Loomis Sayles Bond (LSBRX) Boston,MA - lost 24% in 2008;a similar fund to this one (initiated in 1991) that they managed gave an 8.5% annualized return.
T. Rowe Price Emerging Markets (PRMSX) Baltimore,MD - lost 62% due to investments in Russia in 2008, but two new fund managers take over in March along with the input from 21 analysts.
Vanguard Primecap Core (VPCCX) Valley Forge, PA - lost 34% in 2008 but still outperformed the S&P 500 by 5%. The fund emphasizes stocks of large, high-quality companies.
Vanguard Primecap (VPMCX) Valley Forge,PA - a fund that is almost closed to new investors is a near clone of Primecap Core; has an annualized return of 12% for the past decade.
Clipper Fund (CFIMX) Canton,MA - value-stock fund
Yacktman Fund (YACKX)Austin,TX - a mid-cap offering
Mairs & Power Growth (MPGFX)ST. Paul, MN - quality blend-equity fund combining growth and value, some large caps
Meridian Value Fund (MVALX)Pawtucket, RI - mid-caps offering the growth and value style
(source: Kiplinger.com, ConsumerReports)
