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Columnist Examines Which Funds Will Be Leaders

In a report for the Chicago Tribune, columnist Andrew Leckey looks at the leading position commodity mutual funds will hold for investors over the next few years. ("Commodity Funds Lead Race into the New Millennium, 15 October 2006.)

Pointing to the fact that the composition of the best performing mutual funds since 1999 indicates a shift in confidence from growth stocks toward holdings in real estate, precious metals, energy and international stocks, Leckey reminds readers of the volatility of top mutual-fund performers.

Those who place their confidence in the current "winners" are, according to his article, expressing the belief that the present conditions in the world will persist. Recent downward trends in oil prices, however, have surprised even some of the top performing fund managers.

Leckey examines developments in energy, Eastern European markets, and real estate and quotes Russell Kinnel, the director of mutual fund research for Morningstar Inc, based out of Chicago.

"For the next few years, large-cap and growth stocks will probably do pretty well, and I doubt if we will see a mirror image of the last five years," said Kinnel. "However, I don't think large growth is going to destroy the small value stocks that have dominated until now.

In addition, Ron Rowland, editor of All Star Fund Trader, an Austin, Texas based newsletter, is quoted as pointing to the Bruce Fund as a leading investment over the next five years for its proven ability to rotate in and out of given sectors.

Leckey's article can be found at chicagotribune.com.

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