This goes to show how distorted Quantitative Easing (QE) has made things. It’s a value investors nightmare… It’s important to use your head when investing in this market. A common mistake that investors tend to make is to pick a fund (or stock) based on past performance. They’ll think “look how well this fund has done the past few years, I want to have my money in that.” Just because something has done well doesn’t mean that it will do well moving forward. Most times, it’s actually the reverse as things that have done well tend be expensive and things that haven’t are now cheap. Remember – the price (valuation) you pay determines your future returns.
Nick