Article: Second time's a charm: after making a false start, B.E. says now is a better time to buy mid-cap growth funds. (Mutual Fund Focus).(Brief Article)

We got it wrong. We thought December 2000 was a good time to jump into mid-cap growth funds. That wasn't the case, although it looks to be true now.

Our thinking at the time was this: Funds investing in the growth stocks of mid-range companies had done well during 1999 when they returned an average 65% total return. The streak continued during the first eight months of 2000, with mid-cap growth funds posting an average 43.10% gain, compared to 10.64% for the Standard & Poor's 500 index.

Wall Street calls that kind of thinking momentum investing, just a fancy way of saying that you're using your money to chase trends that have already taken flight. In ...

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