Diamonds and Dogs
Bowl FeverBowl Fever
It's that time of year again with the annual tradition of college football bowl games. This year there are 35 bowl games, including the inaugural Pinstripe Bowl in NYC. 35 bowls equates into 70 lucky teams that get to play for a championship. With a total of 130 or division one football teams, more than half are playing in a bowl and plenty of choices for fans to view over the next several weeks. Speaking of choices, there are at least 1500+ Exchange Traded Funds (ETF's) that investors can pick from. Sometimes too many choices, whether it is college bowl games or mutual funds, can overwhelm a person and lead to underperformance. Buying an ETF and trying to predict the direction of the market, a commodity, or a country is not like investing in companies and sharing in their current and future profits. Keep it simple.
Simply put, money has begun to flow out of bond funds and much of it may find its way to stock mutual funds which should be very good for stock investors and could be very bad for risk-averse bond fund investors. With so many predicting this reversal in money flows though, it may be some time before it gets crazy. That being said, Pimco Total Return was down about 3% in November and some investors are heading for the hills and leaving the world's largest mutual fund. Stay tuned.