U.S. large caps as represented by the S&P 500 have been the runaway winner among equity market sectors in 2014. Foreign markets and U.S. smaller companies have lagged. A consequence is that broadly diversified equity portfolios trail the S&P 500 this year. Investors should remain diversified, however. As shown below, past market environments have seen underperformance by the S&P 500. Staying diversified can lead to more consistent returns across market cycles.