Seizing upon his media “celebrity,” (which essentially means you have sheep lining up for your perceived expertise, created solely by being seen on television) Dent formed an ETF in 2009 called the Dent Tactical ETF (DENT). This is one of those actively managed ETFs you may have heard about.
The fundamental problem with actively managed ETFs is that they absolutely defeat the purpose of ETFs; low fees. Actively managed ETFs charge higher fees for management of the holdings.
Although most actively managed ETFs still have lower fees than non-index mutual funds, if given the choice between the two you’re better off paying higher fees and buying mutual funds. Of course that assumes you were only given those two choices, as I am not a fan of mutual funds, especially during bear market periods.
If you don't already know why, click here.
Target date funds offer another false epiphany. Click here to see why.
The logic behind actively managed ETFs is nearly as flawed as active management of mutual funds (like Fidelity’s widely advertised and I should add completely useless program). You cannot provide any real value using either approach. In each case you are paying higher fees in exchange for some decision-maker to essentially throw darts.
When the actively managed ETF holds several ETFs, as is the case with DENT, it’s an even worse situation. Active management is best utilized for managing individual securities because you are able to base your decisions on the fundamental and technical data of each security.
Just by reading the description, it’s obvious to me the Dent Tactical ETF (DENT) is a completely useless investment vehicle, unless your goal is to have fees deducted from your account while losing money.
The objective of DENT is long-term growth of capital. It invests in other exchange-traded funds, and shares of certain exchange-traded products, including but not limited to, exchange-traded notes, exchange-traded currency trusts and exchange-traded commodity pools. It also invests across several assets such as domestic and foreign equities, domestic or foreign fixed-income or commodities.
Let’s have a closer look at the Dent Tactical ETF (DENT). As the chart below shows, since inception, DENT has delivered miserable returns when compared to the Dow, Nasdaq and S&P 500. In addition, after deducting the 1.5% annual expense ratio, you’d end up with a nice annual loss.
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Mike Stathis holds the best investment forecasting track record in the world since 2006.
This is the chapter that shows where Mike recommended shorting Fannie, Freddie, sub-primes, homebuilders, GM, GE, etc.
So why does the media continue to BAN Stathis?
Why does the media constantly air con men who have lousy track records?
These are critical questions to be answered.
You need to confront the media with these questions.
Watch the following videos and you will learn the answer to these questions:
It is a massive collection consisting of thousands of pages and hundreds of videos exposing hundreds of con men, liars and idiots.
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Remember that Mike is not getting paid to save people from the lies about gold, silver and the economy that continue to be spread by the countless number of charlatans who are always in the media.
He does not sell precious metals and he does not sell securities.
He does not even sell advertisements.
That means he has NO AGENDAS.
In fact, he is losing a great deal of money for speaking the truth and trying to save Main Street.
How often do you hear someone spend so much time at work fighting to get the truth out when they should be focusing on sales? With the exception of Mike’s efforts, it NEVER happens.
But let's not also forget that NO ONE has been more accurate forecasting so many different things over the past several years than Mike Stathis. And his track record is in print.
Many have been fooled by snake oil salesmen to think they are on your side, when they are really looking to hook you into their sales pitch.
Mike could focus on producing videos that always highlight his amazing track record in order to generate sales, but he doesn’t.
Instead, he spends a great deal of time exposing the liars and con men out there who are duping millions of people with their gold-pumping, doomsday delusions, even though these efforts are costing Mike a great deal of lost sales.
Just remember this down the road once you look back at this period as a huge fraud perpetrated not only by Wall Street, but also by thousands of doomsday, gold-pumping charlatans. If you do not already realize they are scam artists, you will eventually if you take their advice. That is a guarantee.
Mike Stathis remains the lone voice of reason and wisdom for Main Street.
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Part 1 (Overview) Part 2
Previously, we summarized some important pieces published on mutual funds a few years ago. See here. Here, we continue with an in-depth look at how some kid hoodwinked Main Street into sending him...
Check below for Part 2. ...
Update on Dent (April 25, 2015): Check out this new video on Dent, showing his terrible track record Broken Clock Moron Of The Month: Harry Dent Update on Dent May 3, 2015: M...
You may have heard of one of the newer (marketing) "innovations" developed by the mutual fund industry called target-date funds. They were launched a few years ago as a way to ensure investo...
Continuing from Part 1 Contrary to the claim that Federated’s Prudent Bear Fund holds more short than long stock positions, if you check the current top holdings, you won't see a single short p...
As I sat at home on this early Saturday morning doing some research, I ran across an article I wanted to bring to your attention. First, I want you to notice the title. ...
From 1991 through 2005, Legg Mason’s Bill Miller was the only mutual fund managerto have beaten the S&P 500 Index each year for that 15-year period. That should have been a warning sign alon...
As I continue from Part 1, let me explain further why mutual funds can get killed during bear markets. A down market is the best way to lower the cost basis of the fund’s securities posi...
This article was modified from a portion of the The Wall Street Investment Bible. That’s right. This material is contained with the appendix of the book; not the body. Mike saved even more...
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