Tonight, let's do a review of T. Rowe Price New Horizon Fund (PRNHX). From their website: The fund will invest primarily in a diversified group of small, emerging growth companies,...." Small companies are by nature more risky and volatile than large companies. There have been a couple of years of whopping losses in this fund. In 2008 it lost 38.7%, which is about what Brinker's equity portfolios lost.
The top ten holdings represent about 18% of its total holding. I never heard of any of the companies in their top ten.
The expense ratio, like with many of Bob Brinker's new funds lately, is higher than Vanguard Funds. PRNHX charges 0.81%, but there are no other fees. Minimum first-time purchase requires $2500 and $1000 in IRAs. Total fund assets is a rather low $9,141.82 million. The fund inception date is 06/03/1960.
It seems likely that anyone who would invest a significant portion of their equity holdings in this fund (right now) would have to be very bullish on the stock market going forward. Look at the volatility over the past year:
Bob Brinker's latest S&P 500 Index target range is still "upper 1400s to lower 1500s" and he recommends dollar-cost-averaging on weakness.
The beautiful lotus in the little lake near my home are still blooming, but won't be for long. They are coming to the end of their season:
It seems likely that anyone who would invest a significant portion of their equity holdings in this fund (right now) would have to be very bullish on the stock market going forward. Look at the volatility over the past year:
Bob Brinker's latest S&P 500 Index target range is still "upper 1400s to lower 1500s" and he recommends dollar-cost-averaging on weakness.
The beautiful lotus in the little lake near my home are still blooming, but won't be for long. They are coming to the end of their season:
