Retail sales jumped 1% on a seasonally adjusted basis last month, the Census Bureau reports. That’s the best monthly gain since last October’s 1.6% surge. It’s also the eighth straight monthly increase. Consumption, in other words, is doing fine. But quite a bit has changed on the global stage in recent weeks, namely, the Mideast turmoil and resulting jump in oil prices. The question is whether February data is dated?

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Brokerage Commissions: The Hidden Costs of Owning Mutual Funds
Xiaohui Gao (University of Hong Kong) and Miles Livingston (University of Florida) | Mar 4, 2011
Brokerage commissions represent hidden costs to investors because commissions are not included, nor reported, in the fund expense ratio. This paper analyzes unique fund level data on brokerage commissions paid by U.S. diversified equity mutual funds from 2000 to 2007. There are three main conclusions. First, an average fund pays 25.72 basis points (bp) per dollar of assets, in addition to an average expense ratio of 131.96 bp, resulting in a total out-of-pocket cost of 157.68 bp. Second, a one bp increase in annual commissions per dollar of assets is associated with a decline of about 5.8 bp in a fund’s annual return. Third, our analysis yields a number of substantive policy implications, such as commissions being included in the fund expense ratio, and mutual funds detailing their soft dollar arrangements. These disclosures would enable investors and regulators to make more informed decisions.

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