Everything you need to know for a sector update

Co-founder of the Switzer Report
Print This Post A A A

Key sectors

  • Over the three years to 30 April, the so called “yield sectors” – financials, A-REITS (property trusts), utilities and telecommunications have each returned over 18.0% per annum. They have only been topped by healthcare, which has returned 30.5% per annum.
  • For both growth-oriented and income-oriented investors, to avoid too much tracking risk, we recommend that in the major sectors, some position is taken even if the view is under-weight.

 

A subscriber wrote in and said that if he wanted to take $200,000 from a portfolio of shares worth $1,200,000 off the table, how would he go about doing it? I really like this approach when the circumstances are right – so I wrote back and said that I would start by looking at my sector allocations first, before thinking about which individual stocks to reduce or exit. My sector allocation would, of course, reflect my investment bias – which often just boils down to whether growth or income is the main objective.

Also from this edition