Since mid-September, market volatility has been hitting all-time highs, with crazy rides up and down (often within the same day); it thus may come as no surprise that individual investors are catching the schizophrenia. Many advisors have shared anecdotes demonstrating that most individual investors are relative investors in up markets and absolute investors in down markets. You’ve probably witnessed it yourself: a client who cares only about outperforming the S&P 500 when markets are going up is suddenly calling to ask you how to protect his portfolio from any losses.
It may be a good time to talk about balanced funds. The tables on this page list some of the best-performing balanced funds for one-, three-, and five-year periods.