A Santa Claus Rally, or a Christmas Crash? Tread softly, and carry a big bag of cash!

It's almost year end, and the big dogs of the managed mutual fund industry have quite a quandary on their hands.

They stayed out of the fall rally, hoarding cash, and subsequently made no money, while the market surged ahead.

Their problem:  Well, they now either have to make up all of that in the next two weeks, or be prepared to explain to their many clients why their investments did not keep up with the market, and in fact, performed well below it.

Remember, these are the guys who charge you exorbitant fees to take care of your money, and often charge you a percentage of your money to get into their funds, and then to get out of their funds.  Now they are caught between a rock (Gold) and hard place (the market).

Weve done well this year (about 208%) so we are selling into this so called rally, and taking profit off the table while the taking is good.  I hope you see it as I do, a fund managers hell bent race to the finish, and the devil take the hind most.

With the Job situation in the USA exactly the same as it was a year ago, with more people actually on the dole, and 41 Million Americans currently on food stamps, wère getting into cash for the Christmas Crash!


HP

Related articles

• 'Santa Claus Rally' at Top of Investors' Wish List (online.wsj.com)
• Mark Hulbert: What "Santa Claus Rally" really means (marketwatch.com)
• "Miracle on Wall Street: Will a "Santa Claus Rally" Bring Christmas Cheer to Investors?" and related posts (moneymorning.com)