how can i apply Cost-of-Carry view to analyze futures marketplace within trueness?
Question:there is a truth-seeking relation between cash price and futures price of any asset according to Cost-of-Carry model.I want to know how that can be applied to real-life market, how that may affect asset's bread price.Answers:
The cost of carry refers to the lost opportunity cost of purchasing a unusual security to some extent than an alternative. For most investments, the cost of carry across the world refers to the risk-free interest rate that could be earned by investing currency within a theoretically not detrimental investment vehicle such as a money market depiction minus any future cash-flows that are expected from holding an equivalent instrument beside the same risk (generally expressed within percentage terms and call the convenience yield). Storage costs (generally expressed as a percentage of the spot price) should be added to the cost of carry for physical commodities such as corn, wheat, or gold ingots.
The cost of carry model expresses the forward price (or, as an approximation, the futures price) as a function of the spot price and the cost of take.
where F is the forward price, S is the spot price, e is the podium of the natural logarithms, r is the risk free interest rate, s is the storage cost, c is the convenience relinquish, and t is the time to delivery of the forward contract (expressed as a fraction of 1 year).
The same model within currency markets is certain as Interest Rate Parity.
For example, a US investor buying a Standard and Poor's 500 e-mini futures contract on the Chicago Mercantile Exchange could expect the cost of carry to be the prevailing risk-free interest rate (around 3% as of June, 2005) minus the expected dividends that one could earn from buying respectively of the stocks in the S&P 500 and delivery any dividends that they might pay, since the e-mini futures contract is a proxy for the underlying stocks contained by the S&P 500. Since the contract is a futures contract and settles at some forward date, the actual values of the dividends may not yet be prearranged so the cost of carry must be estimated.
what is zipwideweb?
Question:Recieved a call to buy stock contained by zipwidewebAnswers:
The ZipWideWeb is the directory of all local businesses & services contained by every community.
To view adjectives businesses in your community, step to http://www.ZipWideWeb.com
Is gold ingots and silver a really apt investment in a minute that it is at it's matchless helpfulness contained by the final 30 years?
Question:Answers:
I have other been told to buy at a low price and afterwards SELL when it is high...... I'd be reluctant to buy anything when it is at its glorious point........
but some people still come up with it is a good investment...... but it sure have a long way to walk down
Other Answers:
yup
I think that the gold ingots prices will continue to rise.
Buy low, flog high. Historically speaking, immediately would be the time to sell stale your metals holdings. Unless you know of impending shortages...
I wouldn't recommend it.....you should buy it when it's down...not when it's at its highest.
From what I hear, the answer is no. The values on precious metals fluctuate too much to gross them good investments.
Gold isn't at it's utmost.... three or so weeks ago it was above $700....however, yeah.. I'd buy gold ingots right now because it's around $580 and it's going to be in motion back up.. so I'd invest contained by it... but silver.... no... 35-40 years ago.. silver was 3-5 times where on earth it is now... and it will never see those level again in our lifetime... so, I'd stay away from silver
Commodity prices are big in nonspecific right now. It is not mere speculation. Demand is rising worldwide. devise of how many more those buy Gold for jewelry. There are more people. There are more those that can afford it. The amount of gold one added in supply is hugely small compared to the total gold out near.
Also world uncertainty is intensely high. Gold is looked to as a safe-haven from volatile currencies and during times of inflation.
It should hit $800. It may filch 2 yrs to do so, but I suspect it will get here.
**I own both Gold and Silver right now (gold coins, GDX, and SLV etf's that you can purchase)
right immediately you should buy silver. the metals market moves within a cyclical motion gold is on top immediately and silver is relatively cheap so buy up silver and you can earn 2 to 5 hundred % in 5 to 10 years.
Highly unlikely. Speculators are buying gold ingots in hopes it is going up. When they run out of money, gold ingots price will drop spectacularly...
You are supposed to buy low and sell glorious not buy high and flog higher.
Top 3 Answerer within Business & Finance. (Vote for me)
Gold has a devastating track record as an investment. In the later hundred years (which included 2 world wars and multiple depressions), gold ingots did much worse than bonds, stocks, real-estate.
People tend to get turbulent when talking in the order of gold. Many irrational arguments can be hear (the dollar will collapse etc...). Gold-fever! The current mania could push prices highly developed in the short possession, but eventually, gold will step back to its historical trend which is: underperform newly about adjectives other forms of investment.
No. It needs to settle rear legs down a bit (mid 500's maybe) then yes.
For some top forecasts on gold’s direction, call in the site below:
I like the physical GOLD nuggets.
As most gold ingots is mined as very fine dust and tiny nugget, the larger (over 1oz) nuggets are massively rare! Actually they are as scarce as large diamonds!
I would suggest you look into roomy nuggets!
To see the 'live' spot NY gold ingots price and some museum size gold nugget I suggest you visit a great site I found a few months ago. I purchase a few nugget from them just give or take a few a month ago, and not only are they delicate to look at but in newly the last few weeks they enjoy really moved up in merit!
I'm actually good to purchase others!
The site is:
http://www.california-gold-rush-miner.us
http://www.california-gold-rush-miner.us/australia-gold-nuggets.htm
http://www.california-gold-rush-miner.us/crystalline-gold-miner.htm
http://california-gold-nuggets-miner.blogspot.com
I want to start investing surrounded by stocks and shares. Any accommodating tips?
Question:I'm a complete novice. Any polite websites would be helpful. thankfulnessAnswers:
You should do a search on previous questions similiar to yours.
I would recommend that you invest through sharebuilder.com and vanguard.com. But for choosing the right investment, you should consult a certified financial planner.
Other Answers:
One of the best is TDwaterhouse.com. They one and only charge $9.99/transaction, and will help you near hints on what to do, if you ask them.
do you homework before investing anything, jump to msn, yahoo for investment fundenmentals. i jump the gun and lost 30% within 2 days, good entry it was small amount. don't expect to double your money surrounded by a week :)
Buy shares in companies you use regularly and know are doing okay. Try to choose strong companies that have low rate shares because they're out of favour.
Start next to any 401(k) plans you may have available to you...especially if they contest any portion of it. That is one of the only "SURE" ways to fashion money immediately surrounded by investing.
If you put $100 into your 401(k)...and you are only contained by a 20% tax bracket...you would lone see $80 less within your paycheck. However, if your employer does a .25 match on the first (fill-in-the-blank) percentage of your income, you would next have $125 within your 401(k) growing "Tax Deferred" (benefits of this can be discussed/learned later).
It is pretty easy to see how an instant 25% return on your money is a Major benefit...and you would hold to lose 20% of your overall investment...just to be stern to a 0% return.
Making uneducated, uninformed, and costly investments next to small amounts of money is not wise. It would be best to store up a "measurable amount of money" first, become educated on what option you then enjoy available to you with that $$$amount, and discover what type/style of investing is right for you (individually). Some populace are High Risk stock trading junkies flying by the seat of their pant with amazingly little money hoping to "hit it big"...others lean more towards the tried and true conservative strategies of diversification (spreading the money into a variety of options) and/or fixed income products that can "protect" you money (and earnings) better (but beside lower returns).
For education.....call in a lot of websites...such as...
The Motley Fool (big on educating society and you can take online study lessons for free)...www.fool.com
Yahoo Finance...read the articles, etc.
Subscribe to magazine like "Smart Money" and "Kiplinger's Personal Finance" etc.
.....and until you do these things...stick next to 401(k) investing, Roth IRA's, etc. Start small, build up to the big time. Too many associates in these venue wanna play the "big money" game near no money, no knowledge/education, and more ego than sense.
Good luck. And a good Financial Planner or Broker, Consultant wouldn't hurt...once you enjoy saved up ample money that hiring one of the few honest & ethical ones makes sense.
http://anyonecaninvest.blogspot.com/
www.fool.com
Buy and hold for minimum 5 years. Do not time the flea market for the following stocks.
MSFT, YHOO, EZM, GG, XOM, BAC, T, GSH
You will do just fine while you collect dividends.
You should invest surrounded by an roth ira through a mutual fund company (vanguard is easily the best company surrounded by this field) You need to read. The intelligent investor is a apposite book. Start looking at stocks and understand what the number's expect. Value investing is the best way to step in my judgment (this is also the method used by Warren Buffet) P/e ratios and Return of Equity are moral places to start. After you learn some things start investing its the best road to learn. Start small you will probably create a lot of mistakes your first couple of years but these are sensible learning experiences.
I suggest you to plain a brokerage account surrounded by Scottrade.
Top 10 Answerer in Business & Finance.
what you can find contained by the taxicab service facility?
Question:what you can put or defined in the city taxicab service facility?examples(number of cars,type of cars,customer relationship management,monitoring station,garages)
hold an idea?
Answers:
what can you find at the circus
what's a perfect stock portfolio for growth?
Question:Answers:
There is not enough information to answer your examine.
You have to consider several factor like your age, your tolerance for risk, your current holdings and various more factors.
If you stipulation more detailed information you can drop me a line.
Top 10 Answerer contained by Business & Finance.
Other Answers:
sounds like you want a financial advisor. #1 the portfolio that joe blow is going to suggest via yahoo may not be so good in a minute or a few months from now. spend 1 hour a hours of daylight doing your own research or simply call a professional
try vanguard target retirement fund or enthusiasm strategy fund EZM--> World class base metal deposit and lowest cost producer
FMM.V-->Possible world class gold ingots find
MSFT-->You can not erase this one, just see if you have no PC glass is broken.
XOM-->Energy king for the next century, the most respectable magnificent company in the world, consistant dividend growth.
BAC-->#1 guard in US surrounded by terms of earn and dividend growth.
spike how much are you predisposed to supply me?
Question:Answers:
I’ll give you a million dollars for every great working and successful business hypothesis you can come up with. I will also permit you have my house and my fiancé and adjectives her LV handbags but you have to bequeath me a business concept that makes me billions.
How just about that!
Other Answers:
wuh....huh...uh...watev
What is the Difference between Hedge Funds and Mutual Funds?
Question:please advise meAnswers:
Mutual Funds are public, beat about the bush funds are private. Both require groups of investors, but hedge funds hold few investors.
Other Answers:
Hedge Funds can sell short.
The definition of a mutual fund differs from country to country, but the nonspecific meaning is a fund to which a group of family contribute, usually on a monthly basis, and which money later gets invested by the fund, usually on a stock exchange.
A dissemble is a transaction to "hedge your bets". E.g. you live contained by Britian (owns pounds), and owes an American a $1000. You could then stall your exposure to the dollars by entering into a contract that will deliver to you a $1000 on the day you obligation to pay him. You therefor own contractual certainty something like the amount of pounds it cost you to pay the thousand dollars. A put off fund is a fund that invests in such investments. They are usually outstandingly leveraged. Hedge funds are private funds similar to mutual funds that are managed surrounded by a similar manner. they usually require a hefty minimum to procure in. Mostly well-to-do investors.
where on earth can I find the current returns concede of the S&P 500?
Question:Answers:
The other answer here is an impressive historical chronicle but only go up through 2005.
The "current" dividend yield is 2.05
DJIA -- 2.51
Nasdaq 100 -- 0.51
Other Answers:
This page contains the background and formulas on S&P 500 earnings concede.
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/spearn.htm
Is it better to rate currency for a house or invest the money?
Question:We will be coming into some money this summer and moving in December. Is it better income cash for our alien home or invest and use the interest earned to kind a house payment? I'd love to hear pros/cons to both sides.Answers:
Hi, sweetie! There are two answers:
1) IF you can bring an investment with a rate of return (ROR) that is to say higher than your interest, DO IT.
2) IF your interest appears to be more than your investment strategy can pedal, perhaps it is better to pay envelope cash.
Tips: look into some funds that can truly do 20+% per annum. FLATX, FLTAX, LETRX, EWZ, EWW
If you really have that money, invest it and live next to the house payment for a few years.
Rule of 72: read out you are getting 18% per annum in investments return. 18 go into 72 4 times. That's how many years it take to double your money. If you get, enunciate 36% per annum, then it would cart you 2 years to double that cash. So.... be a sagacious investor and do your homework. It helps to return with a financial advisor, but sometimes that means reduced income for you with really no guarantees (pissing money down the drain). Go to Yahoo Finance and try one of those funds I just told you roughly speaking. LETRX and EWZ ought to do fairly all right: they're balanced beside oil, wireless communications, and bank ADRs. Do your homework and pray for the right answer. Cheers!
Other Answers:
You have to compare the interest payable on the mortgage to the interest receivable on the investment.
If mortgage rates are soaring, you're probably better off using the change to make the house reimbursement, thus reducing the interest you'll have to discharge on your mortgage.
If mortgage rates are very low, you may be better past its sell-by date investing the cash and earn a little extra income.
Dont know If your interest rate is for example 20% but your business can supply you a return on your investment of 21% then it's better to invest surrounded by your business.
There is no greater posession than a house paid sour. If you own the house free and clear you will be able to live on smaller amount. You won't have to be paid so much money. Too many populace have giant mortgages thinking that the charge write-off (the interest) is greater than no write-off. Not true, a giant mortgage forces people to be paid great wages with illustrious income taxes.
A house paid stale is still a burden with insurance, taxes, utilities, upkeep and expansion. A house compensated off may determine if you can live on $11 or $27 per hour; social protection alone or if you must supplement. You didn't say how much money you will enjoy but to be realistic you stipulation to realize that on average you will only be getting a return on your investments of in the order of 5 to 8%. That may not be enough to fashion a mortgage payment. Also investments do not other turn out positive. All investments except for saving accounts hold some risk and you could end up losing money.
Some other things to consider.
Will the purchase of a house for currency use up all of the spare money you hold? It is not good to be short a emergency fund of at least 6 months whip home pay.
Have you considered a compromise where on earth you make a huge down payment and thereby maintain your monthly mortgage payment smaller but still hold money for an emergency fund and investment.
Only you know your full financial situation (other income, taxes, etc.) and your tolerance for risk. I hope it works out for you. Ideally, you pay brass as you own the new house 100% when you move surrounded by. No paper works beside mortgage lenders. You are free financially.
If you insist on borrowing some $$$, make sure you find the higher return than the mortgage interest.
Best Luck Pay Cash.
The piece of mind of knowing that where on earth you live won't be repossessed if you run into financial difficulties is worth it.
We recently have a drastic drop in our income but did not hold any fear of missing a house gift because we have no mortgage.
can i use credit card to fund to scottrade tale?
Question:Answers:
Call Scottrade and ask them. Or call a dozen other brokers.
One rule of investing: Never use borrowed money, or money you cannot afford to lose.
You're making several presumptions beside this question. First, that Scottrade is the broker of your dreams, or the best of the best. How do you qualify that? But w/o more info, neither can I present you advice in attendance. For someone with fixed knowledge, to be precise an open interrogate, and probably still won't be decided until after you've investigated it fully, and truly tried one or three.
Second, you seem to presume that you will truly make money. Instead of focusing on how much money you "could" clear, you should be focusing on how much money you "could" lose. Most novice investors win this backwards. Rather than focusing on ways to make money, focus on ways to run risk and ways of increasing your odds.
Only if you can stay surrounded by the game do you own a chance of making money.
Other Answers:
No. They with the sole purpose accept currency or check. You will have to linger for the funds to clear first, so if you're in a hurry, best point to do is go to a ScotTrade organization and give them change.
That wouldn't be wise because the interest would probably cost you more than your income. If you don't have the spare lolly to invest, you shouldn't be playing with stocks.
Bad move....don't even reflect on about it.
What is the name of a few reliable adjectives trading brokerage company?
Question:1. That kind of company that impart you honorable, reasonable slippage on bid and ask price.2. Give you interest on your balance in your explanation while waiting to buy future commodities.
3. Have a accurate reputation for customer services for their clients.
4. Charge you discount or average or reasonable commision
5. Give you honorable advise on how to trade future commodities profitably
Answers:
I worked surrounded by the futures industry for 10 years.
Please don't try buying and selling derivatives unless you understand them fundamentally well and hold the time to keep an eye on your positions and put together changes instantly if the bazaar goes against you. Please be amazingly very meticulous about accepting direction from people calling themselves experts. I own seen too oodles innocent people loose too much money over the years. Unless you're a professional beside the sort of backup a big merchant bank have it is easy to loose everything within the futures market.
Other Answers:
www.tdwaterhouse.com
Anyone that would suggest/enable you to trade futures on your own would instantly identify themselves as unreputable.
First, buying Futures contracts are the uppermost risk investment you can make...greater than having a bet...because you can lose significantly more than you invested (invest $10,000 and you could lose $100,000).
Second, commissions on Futures are typically high because of the lawful liable held by the company/broker enabling you to "play that game".
Third, the #5 query is an impossible question to answer as an "licensed" professional within the futures/securities industry cannot "guarantee" any returns (i.e. "how to trade futures/commodities<contracts> profitably" implies a web positive return would be realized)
Futures trading is a win/lose game. With REAL consequences. What you are doing by man lured into such "trading" is playing with your money against a marketplace full of "teams of professional traders" who are much more conversant, have faster access to information, and are typically competent to watch the issues that influence these market around the clock.
Depite what anyone may have told you...within are better ways to make money contained by the markets. (solid nuts and bolts will always win out contained by the long term)
Future trading is risky. But if you want, Etrade does offer adjectives trading. It is pretty good.
How do I started swiss wall side.?
Question:could you please tell me How do I expand swiss bank vindicationdo I have to be in motion there or can I clear on line explanation, and transaction, which bank is better or more pay cheque intrest.
what is the minimum balance required. do i own to pay toll in usa
Answers:
Do you really wan to open out a bank rationalization in a Swiss Bank? If so,I can share near you that the Bank system in Switzerland is even more liberal than the other countries and they hold the established "tradition" to gain more and more trusty clients,just due to their peerless work and openness. I woul drecommend you to see on-line adjectives the Banks there and you can apply even on-line for vent of such account. I can notify you that according to their practice it's stricktly confidential any information and when you contact then they will contribute you all the needed information..I conjecture that you don't have to discharge taxes in USA for that..Good luck!!
Other Answers:
What? are you trying to do something unfair....Like launder money or tax evasion?
You can approachable a Swiss account online,but it costs several hundred dollars to approachable. Not to mention the minimum balance. Your portrayal will use a number instead of your name. And no you don't hold to pay taxes contained by the USA. That is why the wealthy own Swiss accounts, or illegal reason.
Well, I don't really understand what you want to achieve by this action. You also can invest contained by Swiss Francs in the US.
There are no sensible "only" online accounts. I assume it should be possible to open an portrayal by requesting all forms needed and mail them back signed. The two biggest bank are UBS and Credit-Suisse. The best interest rate on a "normal" account you'd win at the Migrosbank, but it'll be clearly below 1% per year! And the fees easily can be bigger than the interest earn... All huge banks submission complete online services for transactions and international stock exchange business, but the fees are very lofty, depending on the instituion.
According to international tax law, you have to reimburse tax for the fortune and the interest contained by your home country.
Source(s):
http://www.ubs.com
http://www.credit-suisse.com
http://www.migrosbank.ch
Is investing surrounded by Ethanol Stocks a sure bet?
Question:Answers:
Not realy. Check out this article:
http://yahoo.businessweek.com/autos/content/may2006/bw20060504_832755.htm
Other Answers:
YES, THE FUEL OF THE FUTURE...
GOOD ONE...
it's a good conception.. nope
vyes
yes it is a good bet cos it is the fuel of the adjectives and it can also be used to get family very drunk exceedingly quicklySource(s):
My BRAIN
Not necessarily. The adjectives of hydrogen motors keeps the flea market erratic. Look at the first incarnation of ethanol, it boomed then faded prompt. Its a secondary product that can be like greased lightning replaced by other energy sources. Some motor companies enjoy the engine in fixed production. All it takes is one company to right to be heard it is moving ahead of schedule next to its hydro car and stocks will plummet. Hard to right to be heard for sure at this point in time.But I would seriously consider it.The grease will start to run out soon with China using more and more as time go on.
I watched a show on cable the other morning about a country(can't remember which one)that have in time dropped by partly the amount of oil it be consuming by using ethanol.The government invested surrounded by ethanol technology.Farmers grow corn just for ethanol refinery's.
We must surrounded by time stop our need for grease.Ethanol is our best bet.
in something like 20 years? ethanol is not yet "on-demand". exotic product and good product, but consumers still don't grasp it. how 'bout microsoft? or apple? or pepsi co.? No.
Somebody could amount a way to separate the Hydrogen and the Oxygene from the hose and release a lot of joie de vivre in the process. This is already possible. Unfortunately the process itself cost more than the cost of the actual vivacity released.
For more information I suggest you to see the film "Chain Reaction" starring Morgan Freeman and Keanu Reeves.
I would say aloud no. The leader surrounded by ethanol is ADM Archer Daniels Midland. Last year the stock was 23-25 in a minute 41. Boeing and Chipotle have superior returns in the long run.
There is sentiment that alcohol surrounded by gasoline is a fraud. Once this information gets out no describing what might happen to the stock.
Best Mutual Fund out of these, from a 2-3 years holding perspective?
Question:Which one is the best fund to invest from a 2-3 years holding perspective.The returns have to be the best, but it have to be primarily a large sou`wester fund with minimum or no mid hat exposure:-Franklin India Prima Plus
Reliance Vision
Franklin India Bluechip
HDFC Satellite & Core
Answers:
While the three of these (FIPP, RVF, FIBCF) have a long permanent status record, HDFC S&C is a newbie. But adjectives the four are being manage by some of the best fund managers India have seen so far.
But when you apply the “minimum or no madcap exposure” filter as required by you, solely FIPP and FIBCF stand a chance. FIBCF have few midcaps which are on the verge of becoming colossal caps. FIPP have a portfolio of mainly immense caps pepper with a few midcaps. Both these funds hold grown along with their fund manager who have manage these funds from their inception. Head or tails both are winner and you can choose one among these without any worries.
Please hold a look at the Analyst review section going on for these funds in valueresearch website.
Good luck.
Other Answers:
Why invest contained by a mutual fund when you are paying fees and with for a while research you can find stocks,or commodities-especially gold that will rise to 1000 per ounce within the next 2 years next to all the geopolitical problems and the move of through investment away from the U.S. dollar,or currencies-do your own homework-I good stock can compensate your commisions.
It all depends on how aggressive you plan to play the marketplace. In my personal opinion, I would pick Franklin India Bluechip-G because it have a diverse holding and that India, in standard, is growing at a rapid rate. It have a good stability of a 2-3 year timeframe. None of them. I run them through 2 financial web sites and adjectives
4 funds came up as do not exist. Is this a trick interview?
If you are looking for funds with solid returns
Look up the returns of these (No Load) funds:
JASCX - James Small Cap
HRSVX - Heartland Value
JASVX - Janus Strategic Value
Why would you want simply large panama when "the experts"
have be telling nation for the last 6 years buy just large cap
and small and mid caps hold crushed them (return wise, so far
this year included). No "expert" is smarter than the flea market itself.
For more Investing Ideas go to www.realmoneyideas.com
and click on the "Investments" tab. Let’s look at Investment Company of America (ICA), owned and operate by American Funds (AF). AF is an awesome fund company for a couple of reasons. There are several advantages and disadvantages:
1.AF is a private company which ability they only answer to their MF holders. Fidelity is a obedient company also, but they are owned by stock holders. In the long run the company that only answers to you, the MF holder, is going to look out for your best interests.
2.AF also have some of the lowest annual fees to maintain an portrayal of any MF company. All that being said, depending on your situation ICA may or may not be worthy for you. You need a competent advisor to abet you with that.
3.I would be circumspect with ICA as it is one of the largest MF surrounded by the world. They may seem similar to a good entry but it actually can be desperate. It means it have much less flexibility to move its money around when conditions warrant it.
4.As far as EJ go, they hire people on average who enjoy very little experience contained by the industry, so at a minimum make sure your rep have a lot of experience and didn't only start last month at this. They also hold agreements with companies resembling American Funds where their reps draw from a bigger commission to them then they do beside other products. The concern being your counsel from EJ might be tainted by the reps desire to gain more commission. You need to work near an independent rep to assist you with you decision; one who will give you adjectives the information and doesn't have a covered agenda.
Now let's look at MF's, in broad, or the decision to use one at adjectives.
If you invest in a MF, you hold turned that responsibility over to someone else. To me, they are mostly the same, within general, surrounded by terms of results. Fewer than 10% can lick the Dow or other index it follows because of their fees. Why would you pay someone you don't know, whom will almost to be sure underperform the market, an annual duty of 2.5% to do something you can do yourself, and do it better by buying an ETF, without any input from you after the initial purchase? An ETF is a publicly traded “Exchange Traded Fund, that trades a short time ago like a stock). Just buy the Diamonds (the DJIA ETF) if you want to permit it ride on the Dow, or the Spyders (SPY - the S&P 500 ETF), or the Nasdaq (QQQQ), or diversify across the entire market by buying adjectives three. The ETF's trade just close to a stock or MF. If you want to diversify, and you want to Buy and Hold, buy an ETF.
A MF is always "in" the marketplace, so you are at the mercy of the ups and downs of the Dow. Since you don't manage your risk, you can't put a Protective Stop on a MF, at right to be heard 10%, to lock in your profits when the flea market goes down. Since you spend more time watching TV, or more time decide the color of your new saloon, than you do on learning how to get by money, you don't have a clue what's going to come up. That is not my idea of investing.
Actually, if done properly, it is more work to investigate adjectives of the MF's and their advisors and their traders and their fees and their methods, than it is to investigate all the similar applicable info around stocks. You shouldn't choose to be ignorant, regardless of your investment vehicle, and of late blindly turn your money over to a stranger because they are "listed," resembling you do at a bank. Some MF's are downright impulsive and go out of business. Stocks are "timetabled," as are commodities and ETF's and everything else. With a mutual fund, you've just added a together new set of unknowns to the equation, simply because you don't want to know anything just about it.
The market is a living piece that does what it wants, and will stir where it wishes, when it wants. Nobody know these things. Your question seem to interject that somebody has "The Answer." The best you can do within any investment is try to increase your odds of nouns and reduce your risk. You can do these things yourself, but not surrounded by a mutual fund.
MF's are so 20th Century. Relics of the past. Unneccessary. Buy an ETF. Or supply an ETF short and bet on the downside. There are two sides to every market, not simply the upside.
If you invest in the stock open market right now, or lately buy into all the ETF's you can afford, it's a crap shoot, approaching rolling the dice, and the odds are probably not contained by your favor, whether you have an expert fund mediator or not, because mutual funds are always "in" the marketplace.
They say "Buy and Hold" for the long permanent status is better, but that depends on when you get contained by, and what your definiton of "long term" is. The phrase "Buy low and sell high" infers that you buy after a decline; decidedly not the overnight case here.
The Dow has approached all-time high last see in Jan 2000 and slipshod, so if your long-term definition is more than seven years, then you won't mind waiting another seven years for a profit.
In my view, the name of the team game is capital preservation. When the risks are giant, like right immediately, you get out of the stock and bond market and park your cash within a interest bearing money souk fund or CD or Treasury Bill.
This is simply not a honourable entry point for investors. Be patient, lurk a few months, and you'll be able to buy much more stock like mad cheaper, the risks will be lower (even though they will seem higher), and your prospect of success greater.
If you choice to research the “Buy and Hold Strategy” further, or perhaps trade yourself, I recommend two book titles. One is call "Which Is Better, Buy-and-Hold or Market Timing?" The other is "Do You Have What It Takes to Be a Market Timer?" They will give you plenty to reason about.