Fund Guide: Assess, rebalance your 401(k) after 2008 losses - USATODAY.com: "Assuming that the stock market did indeed bottom in November, the 10 worst industries were aluminum, automakers, casinos and gambling, consumer electronics, diversified metals and mining, industrial real estate investment trusts, investment banking and brokerage, multiline insurance, thrifts and mortgage finance, and tires and rubber."
But, rather than buying 10 sector funds, perhaps you may wish to find one of the 10 you have the most interest, experience, etc. Since we don't know the future, with a list of top candidates, the tie-breaker is the one we have most interest, etc. Why wouldn't it have as good odds (provided it passes a good screen)?
Maybe put 5% of your equity portfolio on it. Wait for a short term oversold situation (say it is down several days in a row). That is not enough, but that is one thing along with many other factors.
Or, better yet, find a fund that overweights a good sector.
http://OnIncome.net
No comments:
Post a Comment