6 Best Stock Funds for 2016

As the bull market enters its seventh year, I continue to favor growth over value.

Don’t look for huge gains in U.S. stocks in 2016. Nearly seven years into a bull market, stocks are on the pricey side, so focus on reducing your risks. There’s no shame in lagging the market benchmarks in a bull market; bear markets are when you want to top the indexes.

Over the past six years, U.S. growth stocks have shellacked undervalued domestic stocks (those that are cheap in relation to profits, revenues and other measures). But based on how their valuation parameters have stacked up over time, growth stocks still look more attractive than value stocks. Meanwhile, small-capitalization stocks, after lagging large caps over the past five years, are finally cheap enough to warrant your attention.

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Steven Goldberg
Contributing Columnist, Kiplinger.com
Steve has been writing for Kiplinger's for more than 25 years. As an associate editor and then senior associate editor, he covered mutual funds for Kiplinger's Personal Finance magazine from 1994-2006. He also authored a book, But Which Mutual Funds? In 2006 he joined with Jerry Tweddell, one of his best sources on investing, to form Tweddell Goldberg Investment Management to manage money for individual investors. Steve continues to write a regular column for Kiplinger.com and enjoys hearing investing questions from readers. You can contact Steve at 301.650.6567 or sgoldberg@kiplinger.com.