The Sector Strategist: Using New Asset Allocation Techniques to Reduce Risk and Improve Investment Returns

Index

AIM Precious Metals Fund (IGDAX), 196

American Association of American Investors (AAII), Asset Allocation Survey, 6–7

Asset allocation, 145–146, 197–208

aggressive portfolio examples, 198–199

balanced portfolio examples, 200

moderate portfolio examples, 199

problems with, 197–198

return expectations, 201–208

theory, 145–146

Asset management industry, investment in, 132–134

Balance sheet analysis, 164–167

Banking industry, investment in, 128–131

Basic materials sector, classification of, 42

Beta statistic, 37–41

Beverages industry, investment in, 96–97

Biotechnology industry, investment in, 62–63

Bond ladder, 156

Bond Price Competition Improvement Act, 153

Bonds, 22–23, 146–157, 195

broker fees, 153

corporate, 147–157, 195

Credit Suisse Company Yearbook, 149, 151

government, 22–23, 146–150

historical returns, 150–157

investment in, 146–157

investment selection of, 195

Prudential Short-Term Corporate Fund (PBSMX), 195

risk percentage, 150–157

trading (corporate), 153–154

yields, importance of, 22–23, 148–150

Bottom-up valuation, 175–176

Brinson Partners studies, 30–31

Broadband growth, technology sector and, 108–110

Broker fees, corporate bonds, 153

Commodities, investment in, 160–162, 195–196

investment in, 160–162

investment selection of, 195–196

Vanguard Precious Metals & Mining Fund (VGPMX), 195–196

Computer hardware and equipment industry, investment in, 112–114

Computer software industry, investment in, 115–116

Consumer discretionary sector, classification of, 42