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Re: Frequent Mutual Fund Frequent Exchanges, from Jim Pilliod
jpilleafe@xxxxxxx
Getting increased "heat" from fund companies for frequent trading,...always
an issue,..but seems to become rampant near peaks,...the fund cos think they
are in the catbird seat,..etc.
Today I was told by TD Waterhouse (the old Jack White & Co) that Scudder
Funds could rescind a trade if they deemed it to be market timing,....I was
attempting to buy the Scudder Japan fund on margin....(Note Dec Nikkei NKZ
futures closed 317 pts above the prev Nikkei cash close,...so a healthy rally
is likely Sunday night when Japan re-opens). I asked the rep if Scudder
would rescind a short term trade if it was a loser,....the rep did not know
what to say. Apparently only winners can be rescinded. I put the trade
on,...using T Rowe Price's Japan fund,....they hate timers as well. I feel
like a parasite after talking with these fund reps....but still persist in
taking the set ups.
Several days ago, another fund rep told me it is the SEC that has mandated no
more than 4 trades per year in a fund,...that it's a "law". I asked what
happens if you're "convicted " of frequent trading,..could you go to jail.
She had to ask a supervisor. I'm not kidding. One of those days.
Have a good weekend. JIM
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