BOSTON (AP) — The stock market posted impressive returns last year, even with the presidential election and the resulting political gridlock. It was a welcome change from 2011, when the market rose only slightly.
The two top-performing stock mutual funds of last year posted returns greater than 35 percent, more than twice the gain of the broader market. But go back further than last year and their recent strength doesn't look as impressive. Both funds performed dismally in 2011.
For long-term investors, it's a reminder of the importance of patience. Just as it's rare for fund managers to pick the top-performing stocks year after year, it's unusual for them to repeatedly post disappointing numbers. The market shifts, and many of the worst performers in a given year fare much better the next. The trick is to find funds that outperform a majority of peers more often than not, and stick with them.
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