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Nye Bevan

(25,406 posts)
Wed Apr 10, 2013, 09:51 AM Apr 2013

S&P 500 hits highest level ever

Source: Reuters

The benchmark S&P 500 index on Wednesday rose to its highest level ever, breaking a record that had stood since October 2007.

The S&P 500 earlier hit 1,567.10 to break its previous all-time intraday high by 0.01 point.

The Dow Jones industrial average .DJI rose 57 points or 0.39 percent, to 14,730.46 and the Nasdaq Composite .IXIC added 16.11 points or 0.5 percent, to 3,253.96.

Read more: http://www.reuters.com/article/2013/04/10/us-markets-stocks-idUSBRE93006T20130410

12 replies = new reply since forum marked as read
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slackmaster

(60,567 posts)
3. Great news if you have been invested for the long term in an S&P 500 index fund
Wed Apr 10, 2013, 10:20 AM
Apr 2013

I've been switching to dividend-paying blue chips, and diverse ETFs and mutuals.

Major Nikon

(36,814 posts)
4. Which isn't a bad way to go really
Wed Apr 10, 2013, 10:45 AM
Apr 2013

An index fund means fees are low, which beats paying someone to manage a fund that has a small chance of beating the S&P 500 in the first place.

Nye Bevan

(25,406 posts)
5. +1. I've never owned an actively managed fund and never will.
Wed Apr 10, 2013, 11:02 AM
Apr 2013

Why pay someone 2% per year to take bets with your money when you can pay something like 0.1% for a Vanguard Index fund?

Kolesar

(31,182 posts)
6. Fidelity Contra was better than the S&P500 fund I replaced it with in 1998
Wed Apr 10, 2013, 11:18 AM
Apr 2013

The problem with the index fund was that they kept adding lame "tech boom" companies to the index at grossly inflated valuations. When those companies blew up, it poked a hole in my S&P 500 index fund investments.

Contra still is turning in good results. I am considering reentering it.

Nye Bevan

(25,406 posts)
7. Looks like it has underperformed the S&P in 2008, 2009, 2010, 2011 and 2013 year to date.
Wed Apr 10, 2013, 11:36 AM
Apr 2013

In 2012 it did beat the S&P but only by 0.26%.

In 2011 when the S&P total return was +2.11% the Contrafund actually lost money.

http://performance.morningstar.com/fund/performance-return.action?t=FCNTX

I don't like those odds.

Kolesar

(31,182 posts)
8. Contra tripled while the S&P500 only doubled since the beginning of 1998
Wed Apr 10, 2013, 12:18 PM
Apr 2013

If you play with the sliders on the bottom of the Morningstar chart

In the five years since 1/1998, you can see the effect of those "tech companies" ruining the index. The index was flat, but Contra was up 17%.

Even in the last ten years, Contra way outperformed the S&P 500: 276% vs 221%

Major Nikon

(36,814 posts)
11. It still means they have the same chance as anyone else to beat it over the next 10
Wed Apr 10, 2013, 12:42 PM
Apr 2013

Over a 10 year period, actively managed funds only have a 27% chance of beating the S&P 500, and you wind up paying the higher fees whether they do or not.

 

joeglow3

(6,228 posts)
12. I trust a Warren Buffet quote on this
Wed Apr 10, 2013, 01:44 PM
Apr 2013

I would have rather have a near guarantee at a good return than a small chance at a great return.

Nye Bevan

(25,406 posts)
9. OK. So perhaps their recent run of bad luck is due to change.
Wed Apr 10, 2013, 12:32 PM
Apr 2013

Which being a Mets fan is not an unfamiliar concept for me.

BTW it might be interesting to see if the manager changed between the good period and the recent bad period. In any case, I wish you luck with your investments.

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