Many investors use services such as Morningstar to pick their investments. That can be a good idea, but in times of market extremes – and this is one of them – it can mislead you if you’re not careful.
Because we’re in a negative market, some funds that are among the best-performing ones at this time, such as conservative ones, tend to be among the poorer performers during times of a positive market.
So if you think the market is turning around, be careful to research the fund’s performance thoroughly to find what could be top performers going forward.
