What Vanguard Funds Do You Recommend

[education]

Hi Guys--

I have been talking with several people and they seem to be saying that mutual funds with strong positions in oil and precious metals seem to be making them a pretty good return on investment.

I have never been interested in these two sectors, but if there is a dollar to be made......

I haven't talked to Vanguard yet, but I'd like to know what  mutual funds representing these two sectors you guys are into and if you think it might be a worthwhile place to go.

I guess I could also consider Fidelity as well.

Thanks for the input and advice.

The Professor

 

[2B]

Diversy. Diversify. Diversify.

You can put a small % of your portfolio in any asset class and be ok. You might even get lucky and move in and out just right for a big gain. However, the odds are that if you fall for the current fad you'll meet your inevitable fate.

If this isn't what you want to hear consider putting evrything in internet stocks. They must be due for a come back. That might be the sector to really load up on. Everybody knows about energy stocks.

 

[education]

Thanks Soon2Be. I was planning to place a small percentage in those mutual funds--maybe 5% in each. I've been the recipient of the tech debacle and it cost me by forcing me to work 3 additional years. I shoulda been on a beach sipping Coronas!!!!!!!!! Now I am a large proponent of CYA and not trusting the holy words of the Financial Advisors.

I am interested in knowing about these 2 mutual funds though.

Professor

 

[thefed]

I'd call them, personally.

 

[renferme]

Just moved some 401k money into Vang. Int'l Value and Int'l Growth.
.
Also, like Wellington
.

 

[cute fuzzy bunny]

Gotta love the stock market. When everyones charging a premium price, everyone wants to buy. When everything goes on sale, everyone runs screaming.

REITS, Energy and Precious Metals might still have some days coming, but you still get rich by selling too soon...

 

[mickeyd]

Hello Professor,

mutual funds with strong positions in oil and precious metals seem to be making them a pretty good return on investment.

These 2 two sectors have had a lot of growth in the last year or so. You appear to be chasing the winners after they have reached their high points. Perhaps most return has been made bythis point and you will be in the "buy high, sell low" crowd, which is a questuonable strategy.

I have never been interested in these two sectors,

As a continuation of the previous idea, if you are not interested in them, don't get involved with them. You can not expect to have a positive return in all sectors so why jump on the band wagon of stuff that you admittedly do not like?

 

[thefed]

where would one goe to see the different sectors and how they've performed in the last year?


is there a 'technique' out there, likely publicized by a book, that consists of buying the worst sectors yearly?

 

[LOL!]

I was planning to place a small percentage in those mutual funds--maybe 5% in each. 

You get oil/energy stocks as part of a normal asset allocation.  Let me ask you this: how much of S&P 500 is devoted to the energy sector?  Yep, it's significant already.

As for precious metals, I'm not into them either as a sector fund.

Now some other areas have done about as well as these 2 sectors, namely small cap value, emerging markets, and international small cap value.  Perhaps this is because these sectors include oil, energy and precious metals anyways?  But I would consider these more diversified than just oil and precious metals.

Allocate assets.  Re-balance.  Buy low, sell high.

 

[Nords]

Allocate assets.  Re-balance.  Buy low, sell high.

Geez does that sound boring.

It'll never work.

 

[mickeyd]

where would one goe to see the different sectors and how they've performed in the last year?

Give this a whirl.

http://www.callan.com/resource/periodic_table/pertbl.pdf

 

[Craig]

Professor, we're in both Vanguard's Precious Metals & Mining (VGPMX) and Energy Fund Investor (VGENX). 

Began putting money into the precious metals fund many years ago ... long enough ago that my wife used to bug me about why I was dumping money into that loser ... .  We've doubled our money in that fund, and it has been a good ride.  But, I'm not cashing out ... I believe it makes sense to have an allocation to precious metals at all times.  I expect this fund to drop ... it is due for a breather.  Of course, gold could also go to $2K/oz. ... the gold bugs are active ...

We just put some cash into the energy fund, and have lost 2% so far.  OK with me, as I feel strongly I want more exposure to the energy sector, and I recognize I might have some short term pain.

Note those comments above ... as a small allocation of your portfolio (challenging, since energy is a $25K minimum, and precious metals is now closed to new investors), investing in these sector funds is fine.  But you're better off with a more balanced approach in most cases.

To your main question, consider the Vanguard index funds, and allocate between them ... Total Stock Market, 500, Value, Mid-Cap, Small-Cap, Emerging Markets, European Stock, Pacific Stock.  Many here can recommend Vanguard bond funds as well (we don't use them ... choosing individual issues and other strategies for now ... don't like bond funds with rising interest rates).

Best of luck.

 

[education]

Thank you so very much, Charles. I had no idea about the fund being closed to new investors or the healthy grub stake needed to get in. $25,000. is more than I want to invest at this time.

I couldn't agree with you more on bonds--I have a very small ($5,000) allocation but really prefer equities. I don't buy the conventional wisdom of age minus stocks=% of bonds.

Professor