The title is "Strong 2009 Performance Warrants Yellow Flag" on Vanguard's website referring to being careful before chasing the returns of recently hot funds. The funds they cite are:
I think Vanguard's advice makes a lot of sense in that we investors should not be looking to bet large sums of money on the latest hot fad because we think the investments will continue to maintain their stellar performance. The truth is, the market dislocations that existed at the end of last year and early this year, which created fantastic buying opportunities, are now mostly gone. The market does that--it will become irrational for a short time, create great opportunities, then comes to its senses and those opportunities evaporate. Which is why it is so important to be level headed while the markets are crazy so you can take advantage of these opportunities. Now we sit and wait. In the meantime, dollar cost averaging is appropriate for any idle cash and adjusting asset allocations that may have gotten out of balance makes good sense.
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