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From 1995 through 1999, big-cap value funds, which typically shop for bargains and have tech-light portfolios, lagged the S&P 500 as tech stocks lorded over the market. Last year and so far this year, though, they're holding up far better than the market and growth funds, reminding us why most portfolio models suggest you own both growth and value funds.
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The Big Screen: Value Funds for All Seasons
In fickle worlds -- such as high school and investing -- squares can all of a sudden become cool.
| Screen Gems |
| How to Build a Low Maintenance Portfolio |
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Over the last year the average big-cap value fund is only down 3.2%, compared with a 24% loss for the S&P 500 and a 37.6% loss for the average big-cap growth fund, according to Morningstar. The reason: Funds and investors that loaded up on pricey tech, media and telecom stocks over the past couple of years have fallen much harder than folks with a more price-conscious approach. ...
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