Interesting article in the online version of the Journal this morning. When you have a fund that has flexibility this is a tougher decision. All good managers will have cold streaks or periods of underperformance, you need to figure out why. Most funds however, basically just mirror an index that is based on a specific style (ie. large cap growth, small cap value, etc). They don’t have the flexibility to invest outside their style box, so when the style is out of favor they are too. The answer here is easy, Modern Portfolio Theory would tell you that you need to have allocations to all asset classes, that didn’t help you in 2002, 2008, or last week, and it won’t help you the next time the market takes a tumble. Investors should only be in sectors of the market in an uptrend.