September 24, 2009
Mutual funds on a bull market run
A bull run for U.S. mutual funds that began in March has topped 100 percent for hundreds of funds listed in the Standard & Poor's index, market data shows.
Since March 9, there have been 100 percent or better gains made by 426 different mutual funds, USA Today reported Thursday.The best performer, Direxion Financial Bull 3X has risen 560 percent, gaining 3 percent when the Russell index rises 1 percent, using a variety of leverage options.
Without using leverage, Oceanstone is up 370 percent on investments with Avis Budget Group and Dollar Thrifty Automotive, up 1,538 percent and 1,919 percent respectively, since March.
The blistering gains
makes perfect sense, Morningstar director Russel Kinnel said.
The best stuff was the stuff that was oversold the most, he said.
These are not guarantees. The average financial services fund is up 119 percent, but the average had collapsed, down 70 percent, when the bear market was on, the newspaper said.