FYI: Here’s a game I stopped playing a while ago and it’s been a very good development in my investment philosophy. Sector bets, as a trader, are a good way to categorize and exploit where the momentum is. But as an investor, worrying a lot about this sort of thing is probably a mistake. Because there’s very little rhyme or reason from year to year why one sector does better than another.
I’ll give you a for instance, based on Morningstar fund flow data via Credit Suisse. In the chart below, which I’ve annotated, you’re seeing sector fund inflows / outflows for last year and YTD 2016…
Regards,
Ted
http://thereformedbroker.com/2016/06/14/sector-surfing/?curator=thereformedbroker&utm_source=thereformedbroker
