THE SWEET SPOT - After five years in the wilderness, big growth stocks are coming back. These market-beating funds are perfectly positioned to benefit

摘要

DISCOUNT AIRLINES. OUTLET MALLS. EBay. We're a nation practiced at sussing out the best price for almost anything. Well, attention, shoppers: These days, growth stocks are on sale - and fund managers of all stripes are buying. Now, you might take to the idea of buying growth stocks about as much as you feel like donning a pair of bell bottoms. Sure, both looked great at one point, but you probably felt a bit embarrassed about owning them once their popularity waned. Growth stocks were the height of fashion during the late 1990s, but they peaked and crashed in 2000, pulling down the mutual funds that owned them. Indeed, growth funds still haven't recovered - the average fund has lost 32 percent since April 2000. Meanwhile, funds that invest in value stocks have gained nearly 39 percent over the same period. But, as with fashion, some things go so far out they come back in again. In finance, it's called reversion to the mean. And right now that's what's happening with growth stocks.