Saga of the Hot Fund Follies

chet currier

The stock market villains this time are funds investing in US government bonds

This year makes a great case study into the pitfalls of chasing mutual fund performance. How does that differ from any other year? New chapters are always being written in the saga of the Hot Fund Follies, with money piling into funds showing strong recent results just before they top out. Well, 2003 has told the old story with a new twist. The difference is that funds investing in US government bonds, rather than the usual stock villains, have been the ones doling out the damage this time. When the pendulum swings in the markets, it can hit investors in good funds as well as bad. Look at ...