And now, this Thanksgiving week, a reason for funds to give thanks.
In spite of a three-year bear market, the attacks of 9/11 and a mutual fund trading scandal, the economy has remained resilient, writes Arizona Republic columnist Russ Wiles.
In the past 13 years, there have been only three down quarters, and the nations GDP hasnt been in the red since 1991. Just this past quarter, the nations GDP came in at 3.7%, setting the stage for solid fund returns and sales in the months ahead.
And 17 months after the market-timing scandal broke, with one headline more rankling than another, investors still remain committed to mutual funds, as evidenced by strong net flows.
As Wiles concludes: "The system basically works. No rules or regulations will deter all cheaters. Instead, the integrity of an industry depends on the vast majority of its participants.
"More than a year after the scandal broke, its safe to say the worst is over. And as embarrassing as the scandal was, more than 90% of fund groups emerged untainted."