But there is one, and only one that I know of, viable exception to this kind of advice. If one had invested in Janet Brown's "NoLoad Fund*X" newsletter and followed its hot mutual fund buy and sell advice since 1997 (when she took over the underlying financial advice company), one would then have had the satisfaction of seeing those investments beat the market every year since.
Indeed, as the investment newsletter company has been around since mid-1980, its record can be tracked even longer. Its class 3 recommendations (those for a relatively low risk equity portfolio) have had an annualized return of 17% since then. This compares quite favorably with, for instance, the S & P 500 Index which has returned a roughly 10% annualized rate in the same time frame. Over a 30-year period, a $10,000 initial no load funds investment with a tax-deferred 10% annualized return would become $174,500. Under the same conditions, a 17% annualized return would produce a final nest egg of $1,110,000. (As always, past performance is no assurance of future returns.)
Over the decade ending the first of April, 2008, "NoLoad Fund*X" has been the top performing mutual fund advice newsletter among all those surveyed by the "Hulbert Financial Digest," which analyses and rates investment newsletters.