Stock Talk - Harry Milling, Morningstar

We're back and we need to see the word gas GA asks at architects number 68680. That's where you text us. To win the gas card Kate we are joined by none other than Harry milling from Morningstar Harry are things. Very good day I gotta tell you made my day with your your first mutual fund picked because. I had might my son's girlfriend was over the house couple weeks ago. And she wanted to open up her very first mutual fund and this was the fund that I selected for tell us about it. Follow me if there are rolling and yeah. -- array. And what they are better first mutual fund right crazy like a new investor I -- it I don't know if there is. Well I'll tell you is obviously one of my favorite as well and and for good reason. And it is accurately reported the oldest most battle tested finds out there. May and -- they're just to 3000 dollar minimum. And it's pretty seven basis point expense ratios are already can't be that. And I managed data Boston don't forget to make. -- -- But I mean I think more important thing is it's managed well out at a applaud stand it has excellent trailing returns 35 tenure and sticking your back gun -- back. Before that as well. This idea it's about it usually 60% stock 40% bond. And yet sometimes little higher capital lower. It sticks to drink clean Vanilla. On investment grade or year treasury. Bonds that it won't get you ecstatic bears keeping -- for that. The other side -- it's 60% and it. You know going to be beaten team. And you titans like. The werder Dow Chemical. And you at all that didn't get a really nice yield of 3% which is either nothing special. -- in such a low yielding rate environment. I mean it -- is yielding around 2% right so. He had to check his cue it matches to yield has great return several hundred. I think Hillary tell you what my theory is on this -- in any you correct me if I'm wrong marriage you know if you're new investors say you've never bought stocks before you've never invested in this is a college kid that's saved some money right -- And I Cedras and Laura. I said I want you to invest in this mutual fund because in my opinion if it's not -- lose money very often so she's gonna have a good. First investing experience re -- that leads to other because if you if you buy it saved by growth fund with your first deposit right. And it loses 2030% of its die because you happen to buy it the wrong time for that by turning off of investing for a long time. For I think you make a really good point and you are in fact one of the reasons -- -- I expect and are willing to an animator on black -- global allocation is that. Secure point about the investor experience you were answering and Q it carried kind of likely last summer greatly concerned about your the European debt crisis and concern about immigrant. China -- deja Vu all over again you know whether he's -- he's balanced funds known for their noticed her lower volatility. You know and you talk about -- first investor experience. Important things that it would make investors kind of bad in bastard and as soon as the sterling gets happening. -- other plans to release the prime time right rates so you know -- Wellington again and get point that you make. Onion low standards you relatively less standard deviation obviously it's helped by the -- That you're just neighbors lower quality and value stocks. Company get meter higher. -- high quality dark little data stocks to a -- -- lower beta you know it's it's got to be a little bit you know the wind and which ones like kind of the standard. Step -- that's been growing worries you know I agree meeting with the night. You know it's nice person -- it's clearly an investment that you hold on to pretend to when he years. Why don't you but why did you like the black rock like I like how what I -- I I looked at a sit -- why would a guy by. A global fund in this environment where you know the dollar could get stronger word is now in western Carolina one touch anything in your brain. Well first -- thought -- -- -- buying big country months. I mean these therapeutic grade he gives you so you know OK so there are willing Indians very -- domestic focused. But let's face it you know. And there are other countries in the world you know are certainly battling America for a dominant economic dominant -- not be so you know look you know global allocations funds they're really ports check out black our global out it's kind of -- pattern match. I'm getting stat man you know -- long term track record Q did you find. Very diversified across a lot of different comes stocks and bonds -- -- emerging market that big emerging markets. Seen. You lower on the extinct about you know less than third on texting -- on date -- -- that you're not getting paid. -- already extinct as much say. But it's not like he's given up by you know either and they've become very happy with guy plays on the equity side -- -- our value players just sometimes it will be -- -- think for example. Day you do in Houston Japanese stocks after that you're not fair -- it's really paid off to get Staten. Very happy -- you know but again at long term investment horizons sometimes you're going to be out of step it is about it he's out on the line. Well I tell people don't buy mutual fund unless your plane to hold it for ten years. You kept it became this is retirement yes. You know it just -- -- right -- the best thanks for joining RA Dickey that I.