Sunday, May 19|
More Pussy Galore
(Vanguard Precious Metals Fund Particulars)
(Barrick Gold Daily Chart)
Many people believe that randomness is the exception rather than the rule... they like patterns. Back in February I speculated that Barrick Gold had formed a "reverse head and shoulders pattern," and guessed that price would eventually reach $21.25 based on the "pattern." Well, it squiggled its random way up there, eventually. Will it go higher? Your guess is as good as mine! There's no discernible pattern here. ;-)
2002.06.28. Addendum: (Fools Rush In?)
Vanguard closes Precious Metals Fund to new investments
The Board of Trustees of Vanguard® Precious Metals Fund closed the fund to all new investments at the close of business on June 28, 2002. The closure affects both new and existing shareholder accounts; the fund will not accept any additional purchases or exchanges into existing accounts, including accounts in employer-sponsored retirement plans.
"The fund's strong performance against the backdrop of weak stock market returns has attracted substantial cash inflows, which has raised our concerns about investor time horizons and expectations," said Vanguard Chairman John J. Brennan.
Mr. Brennan noted that cash inflows into the $628-million fund have risen concurrently with the fund's strong 50.7% year-to-date return (through May 31, 2002). The fund garnered $124 million in new cash flow during the first five months of 2002, versus only $400,000 in net new cash flow for all of 2001. [emphasis added] Compounding the challenge of investing cash flows is ongoing consolidation in the industry, which has limited the universe of investable securities. Currently the fund holds only 28 stocks, and the ten largest positions represent 74% of assets.
"We are implementing this fund closure to protect the interests of the fund's long-term shareholders," said Mr. Brennan.