Coincidence? Today Pres. Biden and Russian’s Vladimir Putin were scheduled to hold a telephone conference at 3:30 PM over the growing crisis atmosphere surrounding the Ukraine. Article
Almost on-queue the equity markets rolled over beginning around 3:30. All 3 major indexes turned red after a strong showing most of the day. And gold popped by $12.00. (Miners are currently ahead by about 2% for the day.)
Besides the risk of armed confrontation over the Ukraine there are many possible economic ramifications. Europe - particularly Germany - seems dependent on Russian natural gas for heating.
Alternate theory - Bloomberg attributes the change in markets to falling cruise industry stocks based on the latest CDC directive.
Here’s how the major indexes looked a few minutes before today’s close (on very thin trading):
Dow 36,380.57 -108.06 -0.30%
S&P 500 4,776.77 -16.29 -0.34%
Nasdaq 15,733.95 -32.27 -0.20%
GlobalDow 4,136.61 -8.22 -0.20%
Gold 1,817.80 12.00 0.66%
Oil 76.58 0.02 0.03%
(From MarketWatch)

Definitely invest in a Roth IRA to get lifetime tax free growth, plus he could make a penalty free withdrawal for down payment on first home. I would keep it simple an invest a total market index fund, either domestic or global — such as FZROX or FFNOX. FFNOX provides worldwide stock exposure plus 15-20% in bonds. A comparable active fund is TRSGX.

@bee - Thanks for linking the list of Barry’s mistakes. Nice to see that 2016 was “apparently without any flaws”. I thought it interesting that he makes a big deal about his errant call on BREXIT and related matters. Kind of runs contrary to his stated aversion (Item #2) to making predictions.
I could write a book about all the things I’ve got wrong. Nearly killed the goose with an ill-advised bet on an Oppenheimer commodities fund couple decades ago. And, like some others here, I invested in HSGFX in its early years. Abandoned that one before too much damage was done. Just 2 of many missteps over a 50+ year investing history.
-
PS - I think the hardest lesson for me to learn is not to “double down” on a failing investment. Often that simply compounds the problem. A one-way street!

JENSX looks good on the surface but I haven't thoroughly investigated this fund.
I like and own PRILX.
The fund generated top quintile returns for the 3 Yr, 5 Yr, 10 Yr, and 15 Yr periods ending 11/30/21.
PRILX also tends to have lower maximum drawdowns than its competitors.
Two long-tenured managers (one is CEO, one is CIO) have invested over $1M each into the fund.
Here's a PDF touting the performance of Parnassus Core Equity Fund.

Good plan. I was going to suggest a plain vanilla S&P 500 fund but you already knew that. Then he could paper test active funds against that should mo-mo fund chasing or his knowledge of growth v. value, LC v. SC, etc., etc. give him the itch to explore. He's got plenty of time to learn the game. Best of luck to him.

Follow up to my previous post:
The 225-5132 number allowed me to leave a call back number. The Price rep called in 20 minutes, I gave him my info, and he said "Oops, you're an "elite" customer because of the size of your account. I'll have to transfer you to a special rep". Apparently, at Price, being an "elite" customer doesn't grant you the right to a call back, so I had to listen to the music for 35 minutes while outside chopping wood waiting for the special rep!
He couldn't explain the online/phone disabled either, but he was able make the Direct Deposit happen through the back office.
Next I asked about the Irrevocable Trust. It turns out they've had all the correct paperwork for the last 2 weeks, but someone dropped the ball by not re-submitting it. The special rep said it should be done by the end of today.
PS I doubled the size of my redemption from what I originally planned. If TR Price does such a sloppy job of managing accounts, I want to leave as little money as possible with them. If it wasn't for the tax hit, I'd liquidate everything!

It's been almost 3 weeks, and TR Price still hasn't worked on my disclaimer trust which I wrote the Medallion Signature complaint about earlier. But that's not why I'm posting today. With the large distributions that went into my Government Money account, I wanted to have some of it Direct Deposited to my bank account (eventually to Vanguard). Guess what - Unavailable Online
Online/phone redemption disabled. Call (800) 225-5132 to enable redemptions!
If you can't redeem online or by phone, what do you have to do? Go to their office in Baltimore? If it wasn't for the capital gains hit I would take, I'd get out of Price altogether.

Howdy folks,
Thanks so much for your advice and kind words.
I'm having him read all of your comments, but I'm leaning in the direction of starting a Roth IRA with one of the better families. We've got long standing accounts at both Price and Fido, so that's pretty straight forward. Have him open with $1000 and contribute $50 a month and invest it for now in a Target Date or Allocation type fund until he builds the principal and learns more.
again, thanks much,
and wear the damn mask,
rono

I suspect we are now beyond the 2020 crash rebound period, and I think we will have to accommodate more rising interest rate impact. I don't have strong predictions about particular funds, but I am expecting bond oefs like IOFIX will come back down to earth and have more "normal" returns.

Today’s 3 cent gain continued a recent pattern of outsized gains one to two trading days before ex dividend date. This is the reverse of the pattern in effect prior to 2020. Their portfolio is trading around 96 cents on the dollar up considerably from the 60 to 80 cents since 2017. So I agree its best days are behind it and thinking 2022 may only see a 4% to 5% total return. Hopefully I am dead wrong. Can’t think of many or any bond fund that had such a stellar return this year. The managers feel the fund has another 25% to 30% before the legacy non agencies play is over. I would probably cut those numbers in half if only because fund managers in general tend to be overly optimistic. Sure has been a unique and special bond fund over the years and if one was able to sidestep the carnage in March 2020 and return the following month.

Bloomberg reports Wood’s flagship fund is off over 1% today after falling 1% yesterday. It’s been a nasty year for her and her investors. I quickly looked at DFKG - a stock I’ve messed around with and it’s under $27.50 late today. That’s one she’s been buying in gobs - but at much higher prices. I’ve been in and out a couple times. The stock topped out around $75 early in the year. I owned and sold it in the mid $40s. Bought again around $28. Sold near $30. But if I’d been more patient, it topped out around $32-33 a few days later - before falling off the wagon again. Mutual funds / ETFs are so much less risky and easier on the nerves!
Worth considering … Is the action in Wood’s funds an omen of some sort? The high flyers are getting their wings clipped. What’s next?
ARKK -23.17% YTD. down 1.8% late today. / “There but for the grace of God … ”

I looked at HSTRX a while back but the TF kept me away also. At the time I researched I never found anything quite like it. PRPFX might have been the closest.
FWIW, not the same at all but I took a stake in DBC (Invesco DB Commodity Index Tracking Fund) early in the year for 2 of the 3 reasons you gave, inflation/Fed moves. It doesn't fit your 3rd wish though. Commodities can be volatile. It's done well but I think it has reasons to do well again in 2022 - fingers crossed. This ETF is a basket of commodities, 50% energy, 28% PMs + base metals (not miners). The rest in ag.

I think it’s worthwhile to keep this thread alive at least until the end of the year. The markets are somewhat schizophrenic today with the NAS down .5% and the Dow ahead by .25%. S&P flat (as of 1:00 PM.). I think a lot of us are anticipating a change in sentiment some time during the new year.
While The Nikkei 225 fell around .25% in Monday’s session, it more than made up for that with a +1.37% jump overnight. FLJP which I’ve owned a few weeks is up a bit today. Hard to beat the .09% ER if you’re looking to diversify away from the U.S. / Europe.
Not mentioned perhaps is that markets are presently trading on very thin volume due to many traders being off. Some days now only a fraction of the shares normally traded change hands. Likely, this impacts / exaggerates movements in both directions so that they may not represent the valuation as determined by the broader investment community. That was the subtle message in my reference to “slow” markets and the lack of really good coverage by some financial media outlets this week - as their staffs are curtailed due to the holidays.
Thanks @Derf for this thread,

I was going to make a small spec play on HSTRX - which mixes mostly AAA rated credit with about 10% miners. I think this may work in the coming year as the s*** hits the fan (inflation / Fed moves / higher volatility). But I was met with a $49.95 transaction fee, so backed out. Who would’ve thought this guy wouldn’t be eager for buyers of his mostly failing funds? I do have quite a bit of exposure to commodities & miners. Wanted something tamer and actively managed. Anything else out there like HSTRX that would be free to buy at Fido?

@rono,
Your Grandson is lucky to have someone humble like you as a Grandparent. And good on him to be thinking of his future while he's young.
Some thoughts to consider (some mirror what was already stated in other comments):
Start with reading a book like WSJ book of investing. After each chapter is read discuss topic and learnings with Parents or you etc. I found when talking to many young(er) folks at work etc, most don't know how to open a brokerage account, what at Roth IRA is etc.
Open Roth IRA Schwab account. I'd think first about asset allocation. I can virtually guarnatee you that many will advise a young man/person to "be very aggressive when investing at a young age." I say bunk to that. I can virtually gurantee that the first large drawdown, they will sell, go to cash and then avoid the markets if they are too agressive.
I'd start with a 65-35 stocks - cash mix to start with. Get a good education, work hard, get a decent job, stay within your means, don't worry about keeping up with the Jones' and he'll do just fine over time. Stay away from the get rich quick quacks (ARK etc)
I'd consider going with one fund to start with, ARTTX, Artisan Partners Focus Fund. The fund is process oriented, risk aware, can vary between growth/value/blend styles, generally invests in US stocks, fund mgr is very experienced but on the younger side, likely won't be retiring any time soon. ARTTX with the 65% of initial investment, then I bonds with the 35%. Do that over the next 5 years etc. Stay with it.
Also. Young man should stay the F away from any kind of drugs, be careful with the folks he runs with and who his friends are. Think for yourself, don't be brainwashed by social media or what the other Tik Tik sheeple are doing/thinking. Don't gamble. Only have a cocktail on "non-school" evenings. Choose a career path that will be viable, not be able to be automated away, oursourced overseas and that is not locked into a certain geographical area. Choose the right girls to date and the right girl to marry. Choose well.
Only buy a home in a good school district. Never buy a home where in the closest park the basketball rims are bent or missing the nets.
Donate to the local food bank once a quarter. Wouldn't hurt to donate your time a few days a year as well to help others less fortunate.
Good Luck, Good Health to you and your Grandson,
Baseball Fan

Thanks guys. No intent to diminish a fund I’ve owned since the late 90s. But I seriously doubt whether PRWCX would hold up as well in a bear market today as it did in 2008 (when it fell 27%). It was 2.3 months later (3/10/‘09) when equities finally stopped falling and turned up. So the drawdown must have reached 30% at one point. The fund’s a lot bigger (less nimble) today and bonds (which Giroux currently despises) wouldn’t provide any offset to falling equities. Also, it’s more concentrated in mega-caps - much different than when first conceived in the 90s.
As I noted, it has a lot to do with time horizon. If as a retired single person or couple you can watch your entire investment portfolio fall 25-30% in a year’s time and not panic and sell out (likely near the bottom), than a 100% allocation to PRWCX probably makes sense. I “bought-down” all through that year, which eventually paid off. But a -21% beating in ‘08 was hard enough to stomach.
Not trying to trash the fund. Certainly it would hold up better than most equity funds. Just looking at it through the theoretical concept of an older retiree putting 100% in it. In fairness to Mike, he did say “PRWCX and maybe a couple others.”
PS - @MikeM - Maybe TB will start his own fund, or at least lend his name to one. I’ve a feeling it would sell. :)

Good morning @hank. I was kind of using PRWCX as an example of the simplicity and the decent return you get by just owning a good or a few good balanced funds and holding them for a long time. That always seemed to be your style and over the years I've gravitated to it myself.
Hind sight is 20/20 and I've come to understand that sticking with a good fund, like PRWCX, versus collecting funds or jumping in and out of last years best funds wins in the end. The latter to me is like playing "fantasy football". It's a whole lot of fun. You build a new team of star players every year, dumping a player and "re-drafting" a new hot player during the year. Watching players (or funds) stats in the sports page (or MFO?) Your team at the end of the year often looks different than your original picks. Hind sight is, IMHO, this doesn't work well in investing.
I have about 25% in PRWCX. I could call it my Tom Brady fund because it has lasted and been a winner for many years, but I hate TB for obvious reasons - so I won't :)

Some times I have to laugh at myself for thinking I can do better than these balanced funds by making my "strategic" selections. I can't. I would have been better off over the years just putting everything in PRWCX and maybe a couple others.

While Geroux appears to be perfect genius, I’m not sure PRWCX has been tested in a prolonged bear market (measured in years) since he took the helm or since the fund ballooned to its current
$52.7B size. Depending on time horizon it may or may not be a good idea to have all your eggs in that basket.
Personally, I own it, but have little (5-10%) allocated to it - and have to laugh at myself too. :)
But hindsight is always 20/20.

Probably linked before. Worth a look as the year winds down.
LINK to Full Article
Summary -
1. Hold onto your winners and cut your losses short.
2. Avoid making predictions and forecasts.
3. Study crowd behavior.
4. Think like a contrarian.
5. Asset allocation is critical.
6. Indexing is a better bet..
7. Avoid cognitive and psychological errors.
8. Admit your mistakes.
9. Understand financial cycles.
10. Don’t settle in a comfort zone.
11. Reduce investing friction.
12. Remember that there is no free lunch.

The portion of value for the below link, is the calculator link near the end of the discussion (from a prior MFO discussion).
Compounding of the growth over time, being the item of value.

Calculator link, MFO

I see @BenWP ... just read the very nice post from David and the condolences. Now I understand.
Re: Small Caps: I mean when its YE and you look at a Fido SC Growth comparison like THIS HERE you question why you might still hold MSSMX. Review the MFO Premium and lots of 5's until this last year when it's earned a 1 and a first miss to SPY. So, given this and the MFO profile, would you continue to hold MSSMX or have they lost their mojo? Trying not to chase funds but...