The perils of chasing hot sectors
History shows that the relative performance of various sectors changes from year to year. More importantly, these changes are not predictable. That’s why an investor’s biggest ally is staying invested and diversifying according to their comfort level with market volatility. The chart reinforces this strategy by illustrating that sectors that are among the best one year could be among the worst the next. By diversifying across different sectors and not trying to time the next hot trend, investors can offset risks and reduce volatility by balancing exposure in both positive and negative market environments.
Feel free to contact me or visit my website for more information.
Douglas J. Bodtcher
Investors Group Financial Services Inc.
780-448-1988 ext. 284 Douglas.Bodtcher@investorsgroup.com
Tags: investing
