Is a stock allocation system designed to achieve portfolio diversification with exposure to all the important areas of the economy. Advice For Investors’ affiliated investment advisory publication, The Investment Reporter, divides the Canadian economy into five major sectors–Manufacturing, Resource, Consumer, Finance and Utility. Some giant conglomerate corporations are assigned a Multi-Sector status. These Multi-Sector stocks are often good choices when trying to balance a portfolio’s allocation among the five major sectors. The Investment Reporter advises investors to put at least 10 per cent but no more than 30 per cent of their stock money into each sector and also to diversify within each economic sector. Within the Finance Sector, for instance, you might buy one bank, one life insurer and one mutual fund company. (See also Manufacturing Sector, Resource Sector, Consumer Sector, Finance Sector, Utility Sector and Multi-Sector.)
The Investment Reporter •2019-10-27 •
“Diversification is protection against ignorance. It makes little sense if you know what you are doing.” We don’t often disagree with Warren Buffet, but sector investing lets you gain exposure Read More
Canadian Mutual Fund Adviser •2014-04-09 •
Specialty funds can be the most rewarding kind available. But they don’t necessarily stay that way for long. Astute, aggressive investors will recognize this and may move among specialty funds Read More
