Your fund always invested in growth stocks. No dividends. A lotta tech in there. You got the “story” and didn’t mind paying 100x last year’s earnings for something growing earnings 400% for the foreseeable future.
But then growth stocks went through a period of disfavor. They went down more than dividend-paying stocks, where those divvys cushioned the downside. So now you’re suffering self-doubt. You’re 2 1/2 years into a bear market and you’re beside yourself, wishing you’d bought AT&T at the beginning of this down 30% bear market, and been flat over that period. But you didn’t. You’re a growth investor. That’s all you know. So your style drifted. You started nibbling on dividend stocks, slow growers, utility companies. And you did so juuuuust as the big bad bear market was ending and everything was going up again. So then those utility stocks 4 years later were up 32%, while your growth stocks, had you stuck to them, would have been up 200%.
Big whoops. Hey, pull over. This is where I get out of your Prius. I’ll rate you 5 stars. Thanks for the Lyft.
Related or Semi-related Video
Finance: What are Balanced Funds?37 Views
Finance a la shmoop what are balanced funds? well this is a teeter
and this is a totter and this thing here is the fulcrum and here's you madam [Woman sitting on the fulcrum]
imbalanced funds sitting in the middle a gentle breeze sways you left toward a
little more yield or interest on bond investments and then another breeze
sways you right toward a little more growth or capital appreciation from [woman swaying right]
equities a balanced fund is a type of mutual or index fund which generally
keeps an even ish mix of growth and income for investors who don't want the
volatile sharp rocky mountain peaks and valleys that growth only throws at you [Growth chart with peaks and valleys]
but well they want a bit more excitement than all bonds got it or rather they can
handle a bit more risk in their lives than what a simple bond income fund
would deliver to them you know a whole lot of boring yield balance is almost [Woman balancing]
always good for zen.. oops didn't see that breeze coming
Up Next
What is an Aggressive Growth Fund, A GO GO Fund, A High Octane Fund? An aggressive growth fund (also referred to as GO GO or high octane) is a type...
What is Diversified Mutual Fund? Diversified mutual fund allow individual investors to obtain the benefits of risk mitigation through diversificati...
What is Capital Appreciation (Mutual Funds)? Capital Appreciation is the increase in the market value of an investment asset, meaning it can be sol...