On its Web site, one mutual fund company describes its “disciplined and sophisticated investment strategies." (The term investment is used to mean the choice of securities.) Let’s change the company’s name to “Smith." With this alteration, the site says:
At the center of Smith’s investment process is the Smith Investment Committee. It consists of a select group of senior investment professionals who are supported by an extensive staff. This staff provides multilevel analyses of the economic and investment environments, including actual and projected corporate earnings, interest rates, and the effect of economic forecasts on market sectors, individual securities, and client portfolios. Does this statement convince you to buy Smith mutual funds? Why or why not?