What Do With the Stinkers in Your Investment Portfolio

My advice—buy, sell or hold—on some of the world’s most out-of-favor categories.

Shares of large companies, as measured by Standard & Poor’s 500-stock index, have had a great run since bottoming on March 9, 2009. Despite losing 19.3% over the past year, the index has since returned 241.3%, or 19.2% annualized. Over that same stretch, Barclays U.S. Aggregate Bond index has returned a not-too-shabby 4.5% annualized. But here’s the thing: Virtually everything you’ve done over the past three-to-five years to diversify beyond blue-chip U.S. stocks and high-quality bonds has hurt your portfolio’s performance.

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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.