FYI: Being the “investment guy” in the family means I’m often approached during the holidays or at parties with questions about the markets. My most recent question was about a sector fund investment and its prospects going forward.
I’m sure you could come up with any number of intelligent-sounding narratives to describe which sectors will perform best or worst in the future, but no one really knows the answer to this question.
When asked about the potential for the sector in question I was reminded of this chart I created a couple years ago, which I have updated through last Friday:
Regards,
Ted
http://awealthofcommonsense.com/2016/12/the-hierarchy-of-investment-difficulty/
Comments
Good information as I feel a good sector allocation is very important for good returns.
Something I feel has helped me and something that I strive to do is to maintain at least a 5% exposure in the minority sectors of materials, real estate, telecom and utilities and a minimum exposure of 9% in the majority sectors of consumer cyclicals, financial services, energy, industrials, technology, consumber defensive and health care. When the mimimun holdings amounts are added up this totals 83% and leaves 17% that can be moved around to increase the weightings in my sectors of choice.
Currently, my four most heavly overweighted sectors from their minimum base allocations are energy, financials, industrials and technology. Thus far this year as reflected in Dr. Carson's chart all four have been strong performers.
And, so it goes ...
Old_Skeet