When I transitioned from individual stocks to mutual funds, I first followed Dave Ramsey's advice and bought what I though is the best of the best actively managed funds, primarily sourced via a long record of beating the market.
I bought:
FSPTX
PRGFX
TRBCX
Then I transitioned to low-cost index funds, and bought:
VGT
VOO
VTI
I observe the market via my iPhone app, and these funds make totally different movements.
For example, here's today's movement:
FSPTX => 5.57% UP!
PRGFX => 4.50% UP!
TRVCX => 4.17% UP!
VGT => 3.87% DOWN
VOO => 5.28% DOWN
VTI => 6.08% DOWN
The only explanation I have is that actively managed mutual funds can take advantage of the extreme volatility and thus make money when others can't.
Am I right or am I wrong?