Is it just my imagination or are returns on large cap a thing of the past? Mine are doing so poorly, and they have been for such a long time. I keep holding on like a FOOL. Should I just dump em? Thanks.

 

  • MACD 7:54 am on October 7, 2010

    Money moves in cycles…I remember some years back when nobody wanted anything to do with small and mid sized companies.

    Mid sized companies have been doing well recently…not sure how long this will continue.

    You could move your money to that sector or just diversify more between large & mid/small cap.

    Good luck.

  • Caveat Emptor 7:54 am on October 7, 2010

    They are doing poorly not so much because of the companies invested in are doing poorly but because people have been pulling money out of the stock funds and putting it into bond funds – which means less demand for stocks and lower stock prices. Mutual funds are all about long-term investing, however, so keep that perspective. Redeeming shares when the funds are in a trough just realizes the loss.

  • Thor 7:54 am on October 7, 2010

    The fortunes of the large cap companies usually track the economy. If you think the economy is recovering I think they are a good place to be, to own.

    Their time will come, imo.

    In a downturn small and mid caps get hurt worse and first. The opposite in a recovery. They rise faster and first on the upside. We have already seen some of that so going in to them now may not be best. And small and mid companies do more borrowing so they are more interest rate sensitive. In a recovery rates will go up.

    Good Luck.