In Washington, DC, at a Metro Station, on a cold January morning in 2007, this man with a violin played six Bach pieces for about 45 minutes. During that time, approximately 2,000 people went through the station, most of them on their way to work. About 3 minutes: The violinist received his first dollar. A woman threw money in the hat and, without stopping, continued to walk. At 6 minutes: A young man leaned against the wall to listen to him, then looked at his watch and started to walk again. At 45 minutes: The musician played continuously. Only 6 people stopped and listened for a short while. About 20 gave money but continued to walk at their normal pace. The man collected a total of $32. After 1 hour: He finished playing and silence took over. No one noticed and no one applauded. There was no recognition at all. No one knew this, but the violinist was Joshua Bell, one of the greatest musicians in the world. He played one of the most intricate pieces eve
Equity mutual funds perform differently in different time periods as investment styles and sectors come in and go out of favor. While screening tools readily provide performance data and make the task of identifying top mutual funds relatively easy, there is more to constructing an all-weather portfolio than screening for the top funds. This article describes methods of constructing an all-weather portfolio. Before getting into the nitty-gritty of constructing an all-weather portfolio, it helps to know how equity mutual funds are classified and how their performance is impacted by market conditions. Classification by Market Capitalization & Style Equity funds are commonly classified based on market capitalization of the companies in which they invest their assets and investment style. Market capitalization is divided into three categories: large, medium, and small. Investment style likewise is divided into three categories: value, growth, and blend. Combining both types