I need to know whether UJPIX is a good buy. I bought it at $69+ and is now
down to $64+. Do I hold or exchange it to something else? I have hopes
that the Japanese economy has turned around and will do better in the
succeeding years to come. The Nikkei's highest point was 40,000 decades
ago.
"PaModou" <> wrote in message
news:
>I need to know whether UJPIX is a good buy. I bought it at $69+ and is now
> down to $64+. Do I hold or exchange it to something else? I have hopes
> that the Japanese economy has turned around and will do better in the
> succeeding years to come. The Nikkei's highest point was 40,000 decades
> ago.
I think you would be better off with EWJ or ITF. A little more risk, JOF.
I am currently out of Japan.
Hi PaModou,
I like japan for the intermediate to long term very, very much and am
invested there. However, we're going into the slow time of the year
and you, sir, are invested in a leveraged mutual fund. This means that
if all the markets decide to take a little powder this summer, you will
get handed your ass . . . much the worse for wear.
I would get OUT of profunds japan and invest in something relatively
sane like fidelity or price PRJPX or Matthew MJFOX.
best,
rono
The PE of the Japanese stock market is around 80. Quite high. Makes it
pretty risky.
PaModou, how many years have you been investing in stocks and/or mutual
funds? What is your philosophy about investing?
One line of thought (that I think is sound) says to re-allocate one's mutual
fund positions yearly or so such that some of the high performing fund
positions are sold off and used to buy some of the lower performing
positions. See Herb's 2/25/06 post on this. It's a good strategy that tends
to remove emotion (and insert reason) into financial planning. (Thanks to
Herb for posting this, BTW. I think it will help others.)
OTOH, here are two observations that argue against buying anymore of this
fund or buying any Japanese stock mutual funds right now: Your UJPIX fund
has a very high load and expenses. Japanese stocks appear to be way
overvalued now.
Also, is UJPIX on its third manager within about a year, too? See
Morningstar.com's summary. I wouldn't buy anymore of this particular fund.
If you're the sort of investor who believes in chasing returns over short
time periods, without care for loads and expense ratios, then AFAIC, that's
the bigger problem here. I suggest playing with funds with no loads and
lower expense ratios. Try the morningstar mutual fund screener, eliminating
funds with loads and setting the expense ratio below 1%.
I did read an article in the NY Times the other week about how there is an
"irrational exuberance" type craze in Japan right now, reminiscent of the
stock madness in the late 1990s in the U.S.. Total neophytes are throwing
money into the stock market using numerologists' price-picking techniques
(that is, techniques not based on the intrinsic value of a company), and
arguably feeding a bubble.
Lastly, consider repeating your question at misc.invest.financial-plan ,
including, if you're interested, an invitation to discuss allocating and
investing strategies. MIFP is a moderated newsgroup where investors and
financial planners with somewhat more perspective on the big picture post.
"PaModou" <> wrote
>I need to know whether UJPIX is a good buy. I bought it at $69+ and is now
> down to $64+. Do I hold or exchange it to something else? I have hopes
> that the Japanese economy has turned around and will do better in the
> succeeding years to come. The Nikkei's highest point was 40,000 decades
> ago.
>
PaModou wrote:
> I need to know whether UJPIX is a good buy. I bought it at $69+ and is now
> down to $64+.
Well, if you originally thought it was a good buy at $69, then logically
it's an even better bargain now that it's even cheaper.
IOW, if you haven't changed your mind about investing in Japan, then why
worry about a little $5 drop in price?
--
Steven D. Litvintchouk
Email:
Remove the NOSPAM before replying to me.
"Elle" <> wrote
> OTOH, here are two observations that argue against buying anymore of this
> fund or buying any Japanese stock mutual funds right now: Your UJPIX fund
> has a very high load and expenses. Japanese stocks appear to be way
> overvalued now.
>
> Also, is UJPIX on its third manager within about a year, too? See
> Morningstar.com's summary. I wouldn't buy anymore of this particular fund.
It wouldn't matter if it was on its tenth manager. Why do you think this is
an issue?
Questions like, "I need to know whether UJPIX is a good buy" tell me that he
shouldn't be using Ultra Profunds.
Doug <> wrote:
> The PE of the Japanese stock market is around 80. Quite high. Makes it
> pretty risky.
Doug the last article I had read said the PE was around 20. I've googled
this and come up empty. Do you have a reference?