Tag: sectors

Historical Returns

Novel Investor has created a couple charts comparing asset class returns and sector returns in the U.S. and throughout the world. These charts demonstrate the importance of diversification¬†among asset classes and diversification¬†within asset classes. Continue reading “Historical Returns”

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Sector Study Session

Let’s explore some potential investing strategies in 4 different stock sectors: technology, healthcare, energy, and real estate. We’ll start with tech, which had a huge drop today worth serious examination. Continue reading “Sector Study Session”

Which Stock Sector Does the Most to Diversify a Portfolio?

If you are trying to diversify a portfolio by sector, exposure to certain sectors may have more effect than others. This examination of correlations between SPDR Sector Select funds over the last 10 years shows that¬†certain sectors do, in fact, have less correlation than others. Continue reading “Which Stock Sector Does the Most to Diversify a Portfolio?”