All Boats Rise (and Fall) with the Tide

Chart of the Week for August 2 - August 8, 2002

Many investors are naturally concerned about the recent declines in their equity mutual fund holdings. A large part of the problem is not with the mutual funds, but with the stock market. Mutual fund managers purchase particular types of securities: stocks or bonds, large companies or small companies, growth or value. Although managers attempt to beat the market, their returns are highly affected by what happens in the market.

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