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Brouwer & Janachowski Chairman Kurt Brouwer on why there are great opportunities in stock funds now.
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Mutual funds and you know if you hold them but they took a beating over the past year but what were last year's dogs could actually be this year's winners by -- so much.
Joining us now is Kurt Broward is chairman -- per -- and genachowski good to see -- thanks for coming in so.
You think that -- their time is now they were beaten down terribly in 2011.
But as I said you buy low and and they are low right now.
That's right David good to see you Liz is good to see you.
Last -- was a tough year for equity funds hedge funds exchange traded funds it was a tough year all around.
In particular.
For international funded -- stocks are down 12% last year.
But last year's dogs often become this -- darlings although this happened pretty fast.
So last year of an international fund like -- Harbor International was down maybe 11% little more.
This year -- up as through yesterday over 13% -- -- so it's certainly it.
It's it's a big change and it illustrates that as an investor in the stock market you need to be.
A little bit patient with things even if they're not going your way at the moment.
-- the other thing is that it pays to be a bit contrarian because people all last year were selling yes stock funds and buying bond funds and now.
They probably wish they had done the opposite so that.
Leads us to the old buy low sell high -- theory which is of course.
Been long mentioned on Wall Street and now you're trying to say.
Get rid of the ones that are pretty much to loved and start buying the ones that are on loved what.
Is -- the bond funds that we're more often should people be shifting money out of those and in two -- Well absolutely see you know stock funds for the last few years people have been that sellers.
Equity mutual funds for the last few years and have.
In big big numbers bought bond funds and so it doesn't mean you necessarily have this shift on a dime today.
But he if you want capital appreciation you're not gonna get it from -- for the most part whereas you've.
Could very well get -- from stock funds.
All right let's talk about specific names -- -- Harbor International.
Vanguard energy prime cap talk about prime kept Odyssey growth for example.
They they're affiliated somehow with vanguard are they not.
Well -- prime cap management -- -- Los Angeles and they managed a couple of funds for the Vanguard Group vanguard capital appreciation vanguard prime kept.
But did their own family of funds called the prime cap Odyssey funds in the one I mentioned was prime cap the C growth.
Which last year underperformed the S&P 500 by quite a -- was down 2.2.
Percent or so whereas the S&P was up about 2%.
Whereas this year it's turned are on a dime and it's now up ten point 7% so that's a fund that is investing in the future they're investing in growth stocks in.
Pharmaceuticals.
Biotechnology.
100 big names are Amgen and Roche.
And so there are looking to make money for people.
And if you if you want to make money you have to do that as a bit of a contrary and what other people are.
Are all over apple or any other stock you might want to think twice about it.
Growth stocks have not generally done very well for the past few years.
A couple of other names as we went through the vanguard energy fund up 9% year to date you also what the -- US large cap core plus select up 10% year to date but both had been unloved last year.
It's important to note too that if stocks start to gyrate selloffs -- can somebody get -- -- Short term.
But have so -- member I said -- and when we -- I said you need to be patient.
And so if you're gonna make money is actually this in the steady march towards.
Prosperity.
It is sometimes good and sometimes not so good and so.
What you do look ideally is take advantage of the down times to put some money to work.
And that way you're buying low and selling hopefully high someday far in the future.
Kirk Broward sheriff of Broward and Jenna -- great to see occurred have a good weekend thanks for current.
Thanks David hope you do -- listing.
