Client & Beneficiary Investor Sentiment: how do you view the stock market and mutual funds?

Wealthy Florida clients and those exposed to the domestic stock market, like Florida beneficiaries, have seen their wealth grow over the very recent past.  The indices for US small cap, mid cap and large cap equities are on a roar.  If we squeeze a few more points out of domestic equities during the remainder of the fourth quarter,  2013 investment returns will approach or surpass 30%.  So, as a Florida beneficiary or client or investor, how does that make you feel?  What’s your sentiment toward a roaring stock market?  Do you jump in and want to capture the future gains ?  Do you see investment opportunity?  Are you filled with enthusiasm?  Or are you cautious…… perhaps nervous or anxious?   Do you get concerned when your stocks go up?  How do you invest your Florida dollars?  To determine what your investor sentiment is, consider how you might look at a mutual fund with a lot of cash right now. Is that good or bad?  Consider Weitz Partners Value Fund: by all accounts a highly respected mutual fund of great achievement, managed by a highly respected investment guru who’s been there and done that: Wally Weitz.  By all accounts, he is a rock star of the investment world.  The Weitz Partners Value Fund, www.weitzinvestments.com, is a superfund.  And right now, it holds 29% in cash as of the end of September, 2013. Time to buy into a well managed value fund with a lot of cash in a frothy market?   Ready to pounce when there are corrections?   Or……..do you view the Weitz Partners Value Fund as a drag on your portfolio?  …….why are you, in essence, buying, and paying a management fee, for 29% cash earning “nothing” when you can be capturing red hot gains in the stock market?    Investors who are patient and not chasing the latest trend or IPO will do well to wait for the end of the year and if the Weitz Partners Fund is still heavy cash, buy on January 2.  Although Weitz Partners Fund has low turnover, 31% annually over the past five years ending in March, they distribute gains and dividends twice a year, soon in December.  Why buy now and get hit with a tax bill?   Prudent investors, those who can stay above the fray, will do well with investing with Wally Weitz in January…….and be patient …..and let it ride.   Let Wally do the work.  He’s a rock star.  But don’t take my word, check out Weitz Partners Value Fund  at www.weitzinvestments.com where they also have a 2012 Morningstar review, or, if you subscribe, go to www.morningstar.com.