It will become much easier to sell stock funds in six weeks, as the five year performance period will change dramatically,
Morningstar's John Rekenthaler writes.
Now Morningstar's U.S. Large Blend category has an average annualized return over the past five years of 0.57 percent but once October 2008 disappears from the five-year record, the U.S. large blend category improves to 11.49 percent, Rekenthaler's charts show. Not too shabby.
Unsurprisingly, investors tend to buy asset classes that give an overwhelming visual impression of consistent success, Rekenthaler writes, so this bodes well for stock funds.
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Edited by:
Casey Quinlan
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