Smarter Money: If We Get a Rally, Ditch These Funds!

On the off chance we catch a rally in the next few days off this rate cut, may I suggest that it is once again time to do some mutual fund spring cleaning?

There are a host of funds still down 40%, and, when they rally, I think you should take something from them and give money to people who are more deserving.

In particular, I would caution against the (VTFAX Quote)Van Kampen Tech fund, (BFOCX Quote)Berkshire Focus, Van Wagoner's family, Firsthand's (TEFQX Quote)eCommerce and (TCFQX Quote)Communication funds, (MAFOX Quote)Merrill Lynch's Focus 20 fund, (GTTBX Quote)AIM's Telecom and the Grand Prix (GPFCX Quote)C and (GPFFX Quote)A funds.

Let's say you really think technology is the place to be, you can swap out of these funds into some better tech funds, catch the move and take the tax loss. Why focus on these funds now? Frankly, I am a huge believer that you should be with professionals who would never put you down 40%. No rich person who I advised would put up with such poor performance and since the goal is to be rich if you are in the market, I think their advice makes sense.

Sure you can stick with the lousy funds. Doesn't matter to me. I don't make money either way. But I care tremendously about the craft of money management.I wish I could say the same about the managers of these funds.

Random musings: Care to find out the skinny on the companies that reported tonight? See my article on RealMoney.com after I am on CNBC tonight, around 8 p.m. Trying to figure out who is worth betting on long-term for your IRA or 401(k)? Perhaps you should order my Great CEOs video..