The following investors home video presentation is brought to you by the Institute for Econometric Research.
Welcome to Mutual Fund Profits, doubling your money with stock funds.
And now here's the host of our show, Steve Crowley.
Hello and welcome. During the next few minutes we are going to teach you how to double your money with a plan that utilizes the finest stock mutual funds available.
We're going to match this plan to your needs and goals and to how much risk you feel comfortable with.
Joining me are four of the top mutual fund experts in the world.
John Templeton, founder of the Templeton family of mutual funds.
And Norm Fosbach, editor of the number one financial newsletter in the country, mutual fund forecaster.
And Peter Lynch, the guiding hand for 13 years at Fidelity Magellan, America's largest fund.
And Glenn Parker, the publisher of mutual fund forecaster.
Now before we meet our special guests, let's take a closer look at stock mutual funds overall and why most of us should have a sizable chunk of our money invested where it has the opportunity to grow the fastest.
The stock markets, where the future growth prospects of America and the world are bought and sold Monday through Friday.
Talk about growth. Since the beginning of 1975, the total return index for the New York Stock Exchange shows five doublings of invested dollars, including price increases and dividends.
How did we invest?
Well, during the 1980s alone, the number of American households investing in mutual funds skyrocketed from five to 24 million.
And this number is still climbing.
Money Magazine once told its readers that mutual funds are the surest, safest way to invest in a surging market.
And it was right.
Funds as a group flew high in the 80s with a 15% annual average return.
And the top 10 stock funds had averaged annual returns of from 20 to 28%.
Clearly, there was big money made by investors who had bought the cream of the crop stock mutual funds.
Investors who bought the right funds at the right time.
Inflation, it was relentless, rearing its ugly head year in, year out, making our dollars not worthless, just worth less.
During the 70s and 80s, consumer prices tripled.
Going back further, what cost a family $10,000 back in 1950 cost more than $60,000 today.
As middle America wonders why its standard of living was and is slipping and wonders what to do about it.
It's becoming clear to a wider circle of investors than ever before that over time, say five to ten year periods,
stock investments are the place to be to both combat the ravages of inflation and to beat low interest rates.
The wisest way to invest is by diversifying through mutual funds.
Enter Norman Fosback, editor of Mutual Fund Forecaster, the number one fund newsletter in the world of money.
Norm Fosback is the most quoted mutual fund expert in America.
Read his frequent comments on the market and mutual funds in newspapers such as USA Today, the Wall Street Journal,
the New York and Los Angeles Times, Investors Business Daily, and every metropolitan newspaper in America.
And in magazines like Money, Barron's, Forbes, Financial World Business Week, Worth, Fortune, and Kiplinger's Personal Finance.
And on TV, ABC's Good Morning America, CNN, FNN, and CNBC.
With good reason, his Mutual Fund Forecaster is the most widely read fund newsletter in America, in fact, in the world.
The keys behind all the information and advice in Mutual Fund Forecaster are a staff of research professionals,
a sophisticated computer database, econometric models, and decades of experience.
These give Norman the facts, figures, and projections he needs to make accurate, precise buy and sell recommendations
for the readers of the forecaster, a quarter of a million subscribers in all.
How many total funds does the Mutual Fund Forecaster look at?
Our computer database examines every common stock mutual fund that is available to investors.
This population, if you will, consists of more than a thousand different funds.
Now, of these, we select the 500 most interesting and the most profit,
those with the greatest profit potential for actually putting into our newsletter.
And from that subpopulation of 500, we select a much, much smaller group for actual buy and sell recommendations.
We typically recommend about 40 funds in each issue.
Of those 40, a mere five garner our best buy recommendations.
So it's really a sorting down process, isn't it? You start with a thousand, go to 500, end up with 40, and then five.
That's right. Exactly right.
Norman, at any one time, how many funds do you recommend that people actually buy?
We would like investors to diversify portfolios, and in fact, that's a major reason for moving into mutual funds
rather than just owning stocks, that you get this diversification.
Because it's important to diversify among mutual funds, you should really own several funds as an investor.
So we make several buy recommendations in each risk classification.
For example, in the current issue of Mutual Fund Forecaster, only five funds rated a best buy recommendation,
with 38 more funds getting Fosback's buy recommendation.
Your own personal portfolio from one to ten funds should be selected from this special list.
Question, how do your funds stack up against the forecasters' choices?
This is a key question because your money can double and grow the fastest only when you pick the winners in the pack
that fit your special guidelines.
Now let's say you want to minimize your risk level, then choose from among the forecasters' best buy and buy list.
Those funds that are rated very low or low in risk.
Then if you'd rather avoid paying commissions, go for the no load or low load funds,
clearly spelled out on every issue of the forecaster.
Well, coming up next, advice from John Templeton and Peter Lynch on why the stock market
and especially stock mutual funds are the place for a considerable portion of our hard earned money.
Money making strategies from publisher Glenn Parker that will help us profit during the 90s.
And we'll get more practical advice from Norm Fosback on specific ways to make money in funds
and why it's important to understand when to buy, sell, and hold.
All this and more when Mutual Fund Profits comes right back.
Forecasting. Professional, high-tech forecasting.
It's what separates Mutual Fund Forecaster from all other financial newsletters.
The system to beat the system was created by the Institute for Econometric Research.
Now you can profit from a new approach to stock market investing.
After 20 years of exhaustive investigation, one of America's leading investment research organizations
has developed the ultimate winning market system with stock mutual funds.
The best mutual funds have soared more than tenfold over the past decade.
Many of the best can be bought and sold with no commissions, starting with as little as $100.
Remember, the key to successful investing is owning the right fund at the right time.
Mutual Fund Forecaster has developed a system using sophisticated computer technology
to make sure you own the right funds at the right time.
Many surveys will tell you which funds did best last year.
Mutual Fund Forecaster tells you which funds will do best in the future.
It's a scientific forecast of each fund's performance for the coming 12 months and the coming five years,
so you can profit in both good and bad markets.
Our scientifically accurate forecasting models have been helping long-term investors
and short-term traders make more money for years.
It's the winning combination of minimizing risk and maximizing returns.
When you have these two factors, it's very easy to make a buy or sell decision.
You simply buy the funds that have the best return in their risk level.
In the world of investing, it's called doing your homework,
and the Mutual Fund Forecaster has developed the system to do all the homework for you.
There is no question but that we have done more hours, more thousands of hours, if you will,
of computer research on the stock market and investing in only mutual funds than anyone else in the country.
Tap into Mutual Fund Forecasters' system to beat the system, to make more money on your money.
The front page alone gives you the financial edge on picking the winners.
Well, the fact of the matter is that the average person who's investing in mutual funds
would be better off than they are today if they went no further
than to study the front page of Mutual Fund Forecaster and follow that advice each month.
Subscribe now and start benefiting right away with investment and trading recommendations,
advice on telephone switching within fund families,
learn which funds to sell and avoid, get continuous follow-ups on the funds you own.
With Market Forecasts, we have the number one market timing record in the nation, says Forbes Magazine.
Fund risk ratings and year ahead profit projections,
full coverage of new issue and closed end funds and more.
You'll also get the complete directory of all major equity funds every month
with all the facts, figures, phone numbers and buy and sell recommendations at your fingertips.
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The consensus of expert reviewers is that every investor must read this book.
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Spending the better part of a day with Sir John Templeton was a rare and enlightening experience.
Templeton resides and works on New Providence Island in the Bahamas
and travels extensively as chairman and founder of the Templeton Group of Funds.
John Templeton is a legendary figure in the world of stock funds and a pioneer in worldwide investing.
Talk about performance.
Original investors in Templeton Grove have doubled their money an amazing seven times over the past 38 years,
turning $10,000 into $1.8 million.
We asked him his secret of success.
The essence of producing good investment results is to find stocks or bonds
that are selling at an amazingly low price in relation to your appraisal of their value.
Buying stocks at relative bargain prices is just part of what mutual fund managers are paid to do.
Buying the right stocks at the right time is one key to each fund's ultimate success.
And as John Templeton warns, expect prices to fluctuate.
There's no way to get protection against inflation unless you invest in something that can go up and down in price.
So you have a choice.
Either you invest in a savings account in which you have no inflation protection
or else you invest in real estate or common stocks or mutual funds,
which will go up and down, both up and down, but in the long run more up than down.
I also asked Sir John why he thought mutual funds have become more popular personal investments
than common stocks themselves.
Here is his answer.
If you're going into something as complicated as selecting investments,
you shouldn't think you can do it better than the people who spent a lifetime at it.
So unless you have spent 10 or 20 years studying and preparing,
it's very unlikely that you're going to turn out with as good results
as if you pick someone whom you have respect for, then has spent his lifetime doing it.
Professional management. Yes, that's what the best mutual funds give you.
Peter Lynch, the man who as manager of Fidelity Magellan Fund,
made more money from more mutual fund investors than anyone else,
is in full agreement.
If you go to a mutual fund, you have a professional person that's working full time
looking to try and find values for you.
So I think there's an opportunity.
I'm very optimistic on the stock market.
I think it's been a good thing for a long time.
John Tableton and Peter Lynch both emphasize relying on experts for fund management.
The same is true when it comes to choosing which fund to buy.
Glenn Parker is a leading expert in this field.
As publisher of Mutual Fund Forecaster, he has spent much of his life
making sure this publication has no equal in picking winning mutual funds for you
through a forecasting strategy that makes money in both up and down stock markets.
You would not think of going in and picking a single stock to buy on the New York Stock Exchange
without some professional investment advice.
Yet a lot of people try and buy mutual funds without realizing it is a more complex choice
and you can't just take the first fund that the first salesman tries to sell you
that you need to look at the whole field.
And to do that you need objective and independent advice.
I get upset when I see people buying a mutual fund their first years in a fund
based on the comments of a friend or a neighbor or a broker,
not really doing their homework.
Well, the worst thing you can do is listen to somebody who is trying to make some money
by selling you the fund.
It's very important to buy mutual funds based upon information
that either you develop yourself or that you've obtained from an independent source.
You can't expect a broker whose living depends upon selling you certain mutual funds
that pay him a commission to give you independent and objective advice
as to which mutual fund is best for you.
The Mutual Fund Forecaster newsletter has really enjoyed since the beginning
incredible success and explosive growth.
Why do you think that's happened?
Well, it fills a need.
It provides a service that investors need.
Someone from the SEC just said last week that mutual funds
have become the investment of choice for Americans.
We've been saying that for a long time and it's simply a question of
if you're going to choose among mutual funds you're confronted with more choices
than there are stocks on the New York Stock Exchange.
What amazes me about the forecaster is that the price is so moderate
and reasonable for what you get out of it in terms of it being an investment newsletter.
Well, we realized a long time ago that most investment advisory newsletters are overpriced.
And we decided that we wanted to create publications that would meet a wide public need
and would be very modestly priced so that price would not be an impediment
to the widest possible number of people deriving the benefit from our work.
A quarter of a million investors and traders, large and small,
ranging from thousands of beginning investors with a few hundred or a few thousand dollars to invest
up to a majority of Fortune 500 companies and most of the nation's largest banks and insurance companies,
subscribe to Mutual Fund Forecaster and are now tapping into the forward-looking research that it provides
through the newsletter and its telephone hotline.
They have made it America's standard reference guide to mutual funds.
Sorting a thousand choices down to a handful of funds where your money should be invested
is what the forecaster does best.
With a market outlook that tells you when to be heavily invested in stock funds
and when to switch out to funds with less risk, like money market funds.
What we're talking about, of course, is being at the right fund at the right time.
That's the key.
The key is to be in the right fund at the right time because there is just enormous disparity
between the performance of not even just the best and worst funds,
but the best 10 percent of the fund and the worst 10 percent of the funds.
Even in strongly rising markets, there are always some funds that are going down.
Even in falling markets, there's always a few funds that are going up.
And there is no substitute for being in the right fund at the right time.
That's what all of our work is dedicated towards achieving.
Coming up, as mutual fund profits continues, how to invest when the market's on a roll, going higher and higher.
More money-making advice from editor Norm Fosbeck and publisher Glenn Parker still ahead
when Mutual Fund Profits comes right back.
The key to successful investing is owning the right funds at the right time.
Mutual Fund Forecaster has developed a system using sophisticated computer technology
to make sure you own the right funds at the right time.
Many surveys will tell you which funds did best last year.
Only this system shows you which funds will do best in the future.
A scientific forecast of each fund's performance for the coming 12 months and the next five years
so you can profit in both good and bad markets.
It's never too late to start making money in the stock market,
and it's never too late to start minimizing your risk.
That's really what Mutual Fund Forecaster is all about.
We've developed our market timing systems and our profit projections for individual funds
to let us go where the action is, when the action is best.
And we have designed our risk ratings to enable our readers to hold their risk of price loss to an absolute minimum.
Tap into Mutual Fund Forecaster's solid, unparalleled research to make more money on your money.
The front page alone gives you the financial edge on picking the winners.
We do the work that if the average investor could devote full time to his investments,
he could begin to scratch the surface because we have a large staff that works on this
and we have the contacts to do this in depth,
whereas the average investor would have a hard time even getting the basic information,
much less the time to plow through literally hundreds and hundreds of funds
to come to the conclusion of which one is best for his particular purposes.
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As editor, Norman Fospeck tracks 1,000 stock funds and their relative performance.
An important part of this process is to track precisely each fund's commissions and expenses.
Funds can spend our money in a variety of ways and to some degree all of them do.
Here's how.
About two out of three funds charge some sales commission for a broker when we buy.
Typically the range is up to nine percent.
Still others charge a back end loader commission when we sell shares.
All funds have ongoing operating expenses and management fees which eat into their performance
and therefore our invested money.
The range here normally from less than one percent to around two and a half percent,
but it can be much higher.
Plus some funds pay distribution fees from fund dollars, so-called 12B1 hidden load fees,
to sell the fund to investors.
It's up to you to know about these charges for any fund you're considering and own already.
Mutual Fund Forecaster tracks all these charges for you so you can understand clearly
where your invested dollars are going and so you can keep these charges to a minimum.
We have talked about this many times in the past.
You are a true believer in no-load mutual funds as opposed to load funds. Why?
We have found that the performance of no-load funds and load funds is almost precisely the same.
Now if that's true, why pay a sales commission?
Why not avoid the sales commission and get your entire investment working for you?
Therefore, all things equal, it's better to buy a no-load fund than a load fund.
However, this does not mean all load funds should be avoided.
Some load funds have had stellar performance.
So Mutual Fund Forecaster compares expected performance versus relative risk,
considering all these loads and expenses.
Over the years, Norm has created many systems that make impressive amounts of money for his readers.
I asked him for an example.
Among the various systems that we have developed for selecting funds is one that I'm particularly proud of.
It's our seasonality system.
Can you give us a seasonality for example, Norm?
Sure. You look at the trading days of every month,
and it turns out that the last trading day of each month and the first four trading days of the next month,
which is five consecutive days, is where the market really gets all of its long-term performance.
Of course, the market doesn't always inevitably go up on these days, but odds are it will over a period of time.
If you had owned the market only during those days over the last several decades,
you would have earned all of the market's total return and then some.
So part of our seasonality system is to go into no-load funds the day just before this favorable period starts,
and then we switch out of no-load funds and into money market funds at the end of the period.
Any other seasonality for examples?
When we did our original research on market seasonality patterns,
we went back to the 1920s because we wanted to encompass the Great Crash as well as better periods of time.
We found that if you had owned the stock market, owned the S&P 500,
only on the days that our research said were favorable on a seasonal basis,
that $10,000 on those days would have grown to over $5 million by today.
Really? That's startling.
Yeah. We have applied this in real time for the last 15 years,
owning no-load mutual funds during the favorable days and owning money market funds during the unfavorable days.
The portfolio that we began at that time in 1977 is when we started it is currently up about 1,000 percent,
and we've earned this return while exposing the portfolio to the risk of market decline only about one-third the time.
Remember, the only way to beat low interest rates at the bank and to double your money faster
so that you'll beat inflation over time is with equity investments.
Common stocks specifically are the place to be invested.
Mutual funds offer the greatest opportunities for broad diversification and spreading of risk so you can manage your risk.
Mutual Fund Forecaster is your professional guide to picking the right funds at the right time.
This means being invested in stock funds to ride the great bull markets and not to survive bear markets.
We designed Mutual Fund Forecaster to be different.
If you're simply average, you're going to earn average returns.
The only way to beat the market is to have a different approach, and that's how we designed the publication.
That's why our risk ratings and our profit projections interplay with one another
to give investors the best possible chance at making money and holding their risk down while they're doing it.
The goal of Mutual Fund Forecasters research team is to make sure you own the right fund at the right time.
Proof that it achieves this goal is the fact that tens of thousands of America's most successful investors read the forecaster religiously, year after year.
Glenn Parker told me that total subscriber satisfaction is one of his prime objectives.
To help assure this, Mutual Fund Forecaster offers a money-back guarantee virtually unique among financial publications.
I asked him what this money-back guarantee really means.
Our motto is that we have no dissatisfied customers, not one.
Either they're satisfied or they have their money back and they're not a customer anymore.
All of our members, all of our subscribers are happy subscribers and happy members, or we want them to have their money back.
Well, I've been interviewing Glenn Parker and Norm Fosvac for more than 10 years on TV and radio
for their expert opinions on the financial markets, mutual funds, and the overall economy.
I've come to trust that advice, and Mutual Fund Forecaster has become an important tool in my financial life.
It's one of the few newsletter advisory services I've recommended on television and in my new book.
I sincerely hope you will try Mutual Fund Forecaster and see for yourself by tapping into the wealth of money-making potential it offers.
Thanks for watching, and here's how to subscribe to Mutual Fund Forecaster.
Thank you.