Also, in today's market climate, what are your thoughts on a good mix of mutual funds, percentage wise, as to growth, value, tech, indexing, income, etc. The real issue for the average investor is whether they should invest in individual stocks or mutual funds. I feel that mutual funds are the preferred way to go for individual investors. My reasoning is based upon the complexity of the stock market. Many people think investing today is a no-brainer and that whatever stock you pick will automatically make money.
Nothing can be further from the truth.
As an example, look at 1999. This shows that stock picking is still essential in today's economic world. By using mutual funds, it allows an investor to compete with the professionals and at the same time maintain a balanced and diversified portfolio. After all, it is difficult for you and me to analyze and make an informed decision regarding companies in this ever-changing financial world that we now live in. Then you and I judge that portfolio manager on his or her performance.