What Was Down Is Now Up
Two of last year’s worst-performing categories ranked among the first quarter’s top performers. Whether it was a reversion to the mean or a temporary blip within a long-term downtrend remains to be seen, but shareholders of precious metals funds and government long-term bond funds likely welcomed the reprieve. The average precious metals sector fund gained 11.3% in the first quarter after falling by 30.8% last year. The average long-term government bond fund rebounded by 7.1% during the first three months of 2014 after falling 5.5% in 2013.