can the same be said of equity mutual funds?
The mutual funds, for the most part, haven’t been too stellar in terms of performance. There are some sector funds that have done very well, but for the most part, diversified U.S. funds are pretty blah. Q: Of course, the Scoreboard looks longer-term — what’s the score there? A: The score is pretty good. The newcomers that are on the Scoreboard as of midyear tend to gravitate toward small-cap and real estate in terms of performance. Overall the funds that we rate A, which is the highest score using research from Standard & Poor’s, are pretty good performers over the long haul. To even be rated, you have to have at least five years of performance. Q: In your opinion, is it time to pull back on exposure to small-cap funds? A: Yes, it is…. The reason why is, first of all, we had an incredible run in small-caps, and small-cap markets run in cycles, typically five to six years — and we’re coming up on the six-year mark. So it seems like, just based on a very historical measure, that the
