How to Choose Mutual Funds

Published: June 15, 2007, 6:14 p.m.

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First you guys need to know my thoughts on what is known as Efficient Market Theory

Efficient Market \\u2013 Since everyone has the same information about a stock, the price of a stock should reflect the knowledge and expectations of all investors. The bottom line is that an investor should not be able to beat the market since there is no way for him/her to know something about a stock that isn\\u2019t already reflected in the stock\\u2019s price.

I feel that this Theory holds true for Large Cap. US Companies. There are really only 1,000 Large Cap Companies (Cap Value > $10 Billion). Meanwhile there are pundits, analyst, and advisors like myself on every street corner to evaluate these 1,000 stocks. With the vast amounts of information and the speed that information now reaches us through the Internet, Cable Business Channels, AM Business Talk Radio how could you know anymore than anyone else?

For more information, visit the show notes at http://www.moneyguy.com/2007/06/how-to-choose-mutual-funds

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For more information, visit\\xa0http://www.moneyguy.com/2007/06/how-to-choose-mutual-funds\\xa0

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