In the United States mutual fund prices are set once daily at 4PM Eastern, that is 1PM Pacific time. In other words, at the CLOSE of the market.
This is one thing to ALWAYS keep in mind when investing in mutual funds. The price is not set until the close of the market. Consider this – let us say it is Friday and all the signs are there that the market is crashing and there is a panic towards the end of the day. Then Monday morning comes around – and all your fears are confirmed. The Asia markets are crashing. There are bears all over the place on the Street. A massive sell off starts at 7am Pacific, all indications are it’s not going to stop. Of course, there will be stock holders who will dump their stocks, let us say Alibaba stocks. But the holder of the mutual fund(s), when seeing a sell off and the panic, then fires the trigger to sell – guess what? The price one gets on the sale isn’t determined until the end of the market when the fund price is set. And by then, that Monday in hell, by 1PM the mutual fund may have crashed to a level lower than the panic happening at 10AM when others are actually getting the spot price on the way out but the holder of mutual funds gets the end of day price and can be caught in a situation of “getting out too late”.
Also consider, when investing in mutual funds, investors send cash to the fund company, which then uses that cash to purchase securities and in turn issues additional shares of the fund. When investors wish to redeem their mutual fund shares, they are returned to the mutual fund company in exchange for cash. Creating an ETF, however, does not involve cash.
Now let us turn it on it’s head.
Suppose some mutual fund investor sees sign of an upbeat in some sector or other that is fronted in the form of a mutual fund. It is Friday, things are looking good. Up. But who knows what the actual mutual fund will be worth, you have to wait until the end of the day, until the “Four O’clock Rule” when the mutual fund price is set.
You have the insider information this up is going to continue on Monday. Let us say, you are Hillary Clinton and her Wall Street friends who want to cheat the system. You’ve been having those meetings. All is set. She is the “big government” that has it’s spooks with the “regulators”. You are the insider, and see the Goldman Sachs mutual fund at a four o’clock set price of $xyz dollars. It might be up, but you already know it will be UP way more on Monday.
Now wouldn’t it be nice if you could then buy a load of that mutual fund AFTER 4PM Eastern, 1PM Pacific, but it looks on paper like you bought it BEFORE 4PM? Wow. That would be nice. You already know the price, it’s a good buy, but if it is after 4PM you cannot buy it at that price now can you? And if you buy it on MONDAY, when it is going to CLIMB, well the spot price you buy will be the 4 o’clock rule, the 4PM price, and by then, you lost your chance, it has already hit that high price. You put in a buy at 7AM Pacific, but you won’t get that buy until 1PM Pacific, 4PM Eastern – and it’s TOO LATE.
It would be nice to buy it, let us say 5PM Eastern or 2PM Pacific on FRIDAY when you ALREADY KNOW THE 4 O’CLOCK PRICE on the same Friday is a good deal. But you can’t. Not legal. You have to buy it at the higher 4PM Eastern price on Monday. Too bad.
Unless you got someone like Hillary.
It is all about September. And on September of 2003, a bunch of funds companies got caught by the SEC. They called it “late trading” and “market timing”. The firms were fined a total of $1.4 billion by the SEC.
They didn’t catch them all. Not easy to do so. If the mutual fund could be bought at the previous closing price, those “special traders” – INCLUDING THOSE INVOLVED IN THE FUND ITSELF - could purchase mutual funds on a day when the market was up AT THE PREVIOUS DAY’S LOWER CLOSING PRICE and then sell the purchase at the next end of day at the HIGHER end of day price, thus selling at the purchase date's closing price for a GUARANTEED PROFIT.
One of the worst was Goldman Sachs.
No, not all were caught. You can catch some by randomly checking timestamps on orders, but intentional falsification of timestamps is difficult to catch.
Especially if you have a friend like Hillary Clinton in power in the government.
They are about to do it again. There will be a couple of “fall guys”. But not Goldman Sachs. And a lot of others won't be caught. And it works even better if it is global behind the scenes to cover for those “timestamps on order”. This will also hurt other investors and the economy. But will provide a lot of donations. In September of next year. After more meetings. It isn’t called capitalism. It is called crony capitalism.
So do I own mutual funds? Yes. Will I be buying some more? Well, that is part of the story, too. I want to buy Defense and Aerospace Industry Funds – I have basically four choices, 3 are ETFs and 1 Mutual Fund. I am looking at PowerShares Exchange-Traded Fund Trust - PowerShares Aerospace & Defense Portfolio (PPA) which is an ETF, SPDR S&P Aerospace & Defense ETF (XAR) which is an ETF, and iShares US Aerospace & Defense (ITA) which is an ETF.
What is the one Mutual Fund? Well…
And there is the Fidelity Select Defense & Aero Port (FSDAX) which is a Mutual Fund. In fact, it is the only current mutual fund that is directly targeted to the aerospace and defense sector is the Fidelity Select Defense and Aerospace Fund.
Why the hell would I do that?
Because for some **** reason, Hillary Clinton is hell bent on going to war with Russia.
This is one thing to ALWAYS keep in mind when investing in mutual funds. The price is not set until the close of the market. Consider this – let us say it is Friday and all the signs are there that the market is crashing and there is a panic towards the end of the day. Then Monday morning comes around – and all your fears are confirmed. The Asia markets are crashing. There are bears all over the place on the Street. A massive sell off starts at 7am Pacific, all indications are it’s not going to stop. Of course, there will be stock holders who will dump their stocks, let us say Alibaba stocks. But the holder of the mutual fund(s), when seeing a sell off and the panic, then fires the trigger to sell – guess what? The price one gets on the sale isn’t determined until the end of the market when the fund price is set. And by then, that Monday in hell, by 1PM the mutual fund may have crashed to a level lower than the panic happening at 10AM when others are actually getting the spot price on the way out but the holder of mutual funds gets the end of day price and can be caught in a situation of “getting out too late”.
Also consider, when investing in mutual funds, investors send cash to the fund company, which then uses that cash to purchase securities and in turn issues additional shares of the fund. When investors wish to redeem their mutual fund shares, they are returned to the mutual fund company in exchange for cash. Creating an ETF, however, does not involve cash.
Now let us turn it on it’s head.
Suppose some mutual fund investor sees sign of an upbeat in some sector or other that is fronted in the form of a mutual fund. It is Friday, things are looking good. Up. But who knows what the actual mutual fund will be worth, you have to wait until the end of the day, until the “Four O’clock Rule” when the mutual fund price is set.
You have the insider information this up is going to continue on Monday. Let us say, you are Hillary Clinton and her Wall Street friends who want to cheat the system. You’ve been having those meetings. All is set. She is the “big government” that has it’s spooks with the “regulators”. You are the insider, and see the Goldman Sachs mutual fund at a four o’clock set price of $xyz dollars. It might be up, but you already know it will be UP way more on Monday.
Now wouldn’t it be nice if you could then buy a load of that mutual fund AFTER 4PM Eastern, 1PM Pacific, but it looks on paper like you bought it BEFORE 4PM? Wow. That would be nice. You already know the price, it’s a good buy, but if it is after 4PM you cannot buy it at that price now can you? And if you buy it on MONDAY, when it is going to CLIMB, well the spot price you buy will be the 4 o’clock rule, the 4PM price, and by then, you lost your chance, it has already hit that high price. You put in a buy at 7AM Pacific, but you won’t get that buy until 1PM Pacific, 4PM Eastern – and it’s TOO LATE.
It would be nice to buy it, let us say 5PM Eastern or 2PM Pacific on FRIDAY when you ALREADY KNOW THE 4 O’CLOCK PRICE on the same Friday is a good deal. But you can’t. Not legal. You have to buy it at the higher 4PM Eastern price on Monday. Too bad.
Unless you got someone like Hillary.
It is all about September. And on September of 2003, a bunch of funds companies got caught by the SEC. They called it “late trading” and “market timing”. The firms were fined a total of $1.4 billion by the SEC.
They didn’t catch them all. Not easy to do so. If the mutual fund could be bought at the previous closing price, those “special traders” – INCLUDING THOSE INVOLVED IN THE FUND ITSELF - could purchase mutual funds on a day when the market was up AT THE PREVIOUS DAY’S LOWER CLOSING PRICE and then sell the purchase at the next end of day at the HIGHER end of day price, thus selling at the purchase date's closing price for a GUARANTEED PROFIT.
One of the worst was Goldman Sachs.
No, not all were caught. You can catch some by randomly checking timestamps on orders, but intentional falsification of timestamps is difficult to catch.
Especially if you have a friend like Hillary Clinton in power in the government.
They are about to do it again. There will be a couple of “fall guys”. But not Goldman Sachs. And a lot of others won't be caught. And it works even better if it is global behind the scenes to cover for those “timestamps on order”. This will also hurt other investors and the economy. But will provide a lot of donations. In September of next year. After more meetings. It isn’t called capitalism. It is called crony capitalism.
So do I own mutual funds? Yes. Will I be buying some more? Well, that is part of the story, too. I want to buy Defense and Aerospace Industry Funds – I have basically four choices, 3 are ETFs and 1 Mutual Fund. I am looking at PowerShares Exchange-Traded Fund Trust - PowerShares Aerospace & Defense Portfolio (PPA) which is an ETF, SPDR S&P Aerospace & Defense ETF (XAR) which is an ETF, and iShares US Aerospace & Defense (ITA) which is an ETF.
What is the one Mutual Fund? Well…
And there is the Fidelity Select Defense & Aero Port (FSDAX) which is a Mutual Fund. In fact, it is the only current mutual fund that is directly targeted to the aerospace and defense sector is the Fidelity Select Defense and Aerospace Fund.
Why the hell would I do that?
Because for some **** reason, Hillary Clinton is hell bent on going to war with Russia.
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