Mutual Fund Investors Flocking to Gold, Natural Resource, and Real Estate Funds
Jonathan Clements of the The Wall Street Journal reports that "Mutual fund investors are doing the right thing for the wrong reason -- and maybe at the wrong time... shoveling money into gold, natural resources and real estate mutual funds." In
this article from SouthCoastToday.com, he notes that, "Chicago investment-research firm Morningstar Inc. calculates that these so-called hard-asset funds now have combined assets of almost $104 billion, up from less than $19 billion five years ago." While these asset classes can be used to diversify and balance a broader portfolio, and reduce risk, Clements adds, "... let's be honest: A lot of what we're seeing is foolish performance chasing. Will it end badly? It always does."
Posted by
KenW at 7:42 AM
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