Why, Oh , Why ?

1. Please, why would anybody buy any actively traded fund, especially in the large market cap category and especially in conventional accounts? As a whole, every investor , large and small, must collectively earn less than the market’s return.  For every buyer there is a seller, of course, and once bid-ask spreads, fees, etc., are factored in, there has to be a slight loss.

Also,  the active funds, due to the frequent trading , often have returns that are often  30, 40 or 50 percent lower, after taxes and sale of shares.   In  traditional, non tax sheltered venues, the difference between gross and net,  is tremendous.  Even in tax sheltered accounts, you are still paying much higher annual fees.

I don’t know if it still exists, but a few years ago, there was an S and P 500 fund that charged a 3 % load, and an annual fee of 1.2 percent.

Why are there still funds that charge sales loads, period? If no one bought them, would they not go extinct?

2) Why do so many people buy or lease very expensive vehicles, take out, in many cases, 8 year loans, and then complain about the “high” price of the premium fuel it requires?    Why don’t they care about the hundreds of bucks in monthly payments, the high insurance costs, the high repair and service costs.

And the depreciation of the very fancy, fussy German brands , and Jaguar, Land Rover,etc., is much worse than the much more reliable Japanese car makers, just compare the resale value of a used MB, Audi to virtually any Toyota product.

I know why the politicians mention gas prices constantly, they know that is an issue with so many Americans, and they are trying to relate.

A lot of consumers  are angry that their fancy BMW , or Audi or Jeep, ( A Jeep Grand Wagoneer can easily set you back 120 k, plus the financing), is far less reliable than a ten year old Toyota Corolla with 150 grand miles on it. In this case, all of that extra money buys you more electronics, more computer modules, 10 speed aut0matic transmissions, etc., but, makes the car less reliable. Sometimes just doing a brake job on a fancy  car requires reprogramming multiple computers, before the car will move.

This one really takes the cake. Most automakers have eliminated the dipstick to check transmission fluid, because no one ever checked it anyway. Now, many are eliminating the oil dipstick, and having the owner rely on scrolling through multiple complicated computer interfaces, etc.

This has led to many engine failures and much profit for the auto makers. Something as basic as checking the oil should not rely on computers.

And, finally, for anybody whom has read all so far, not many, I bet, I say: When I get a tad overwhelmed by everything, and I sometimes feel I have not lived up to my expectations, and so forth,and I think of my far too many mistakes , I will call the dog for a walk.

As we walk our  usual route, and she happily trots, very rarely lifting her nose from the ground, tail wagging, she is having the  time of her life. When she spots a cat or wood- chuck or a rabbit, she has the strength of Hercules and one day I shall don roller skates so she can pull me.

She has no bank account , no money, or bills. As long as her dish is filled, and she eats exactly the same food every day, and she has water,she  is content. She also rides in the car as often as possible , indeed, as soon as I grab the keys she starts bouncing , and heads for the garage at full tilt.

There is also at least one group of people that live in Papua, New Guinea, and their lifestyle has not changed in thousands of years. They also have no money,  or anything other than very basic shelter. They have zero contact with outsiders, and are perfectly happy the way they are. The shelters are built 80 feet high in trees, as protection from ant enemy.

I am getting a bit long winded as usual, but, the point I am trying to make is sometimes simpler is better. I am not suggesting we live like dogs or tribes residing in isolation. I just feel better, by just attempting to keep things simpler, and if I have a house that suits my needs, and I can get to the places I need to go with my car, that’s fine.

I don’t need to continue on the hedonistic treadmill, because there will always be someone with a nicer house, a faster car, and so forth.

When my wife and I go away for a few days, and a family member takes care of Jill, the dog, she refuses to eat, will not go for a walk, and stays on her bed, for a few days. Then she will reluctantly take a short walk, eat a bit, but she is  not her usual self. When we return, she acts like I am the greatest thing ever, and she will not leave me alone for at least 30 minutes. It is a tremendous feeling to know how much I mean to her, it really is, and did I mention that the tribe in Papua also have no psychiatrists, psychologists, and no suicides?