Good Funds in Bad Markets

These managers have stellar track records, delivering strong gains in weak categories.

(Image credit: temmuz can arsiray)

If you’re looking for a stock mutual fund that will rise when all others fall, you’re probably disappointed you haven’t found that pot of gold under a rainbow, either. A diversified stock fund is going to fall when the market does. But what if you could find a fund manager who does well consistently, even in corners of the market that seem perennially cursed? Not a pot of gold under a rainbow, perhaps, but such managers are certainly rare.

Among the most snake-bitten areas of the market are value funds, which look for stocks that are cheap relative to earnings and other measures. Even worse off are international value funds, which combine two struggling categories. Small-company stocks have lagged their bigger brethren for years, and emerging markets have been intermittently awful. Fund managers in Japan have worked in a moribund market for decades.

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John Waggoner
Contributing Writer, Kiplinger.com
John Waggoner has put personal finance and investing into plain English for more than three decades. He was a senior columnist for InvestmentNews and, prior to that, USA TODAY's personal finance columnist for 25 years. He has written for Morningstar, The Wall Street Journal, and Money magazine. Waggoner has also written three books on finance and investing. He has an undergraduate and graduate degree in English literature and is working on his Certified Financial Planner designation. He lives in Vienna, Virginia.