Fund holdings affect fund performance more than fees or past performance. A cheap fund is not necessarily a good fund. Investors are good at picking cheap funds. We want them to be better at picking funds with good stocks. Both are required to maximize success.
The Health Care sector ranks 2nd out of the ten sectors as detailed in my sector roadmap. It gets my Neutral rating, which is based on aggregation of ratings of 22 ETFs and 86 mutual funds in the Health Care sector as of April 13, 2012.
Only one sector, Consumer Staples, earns my Attractive rating. See Figure 1 for my ranking of all ten sectors. My sector ratings are based on the aggregation of my fund ratings for every ETF and mutual fund in each each sector.
Competition for Lipper and Morningstar is “heating up” according to fund-industry expert Chuck Jaffe. Research based on past performance is losing favor as investor recognize its lack of rigor and value.
The Consumer Discretionary sector ranks fourth out of the ten major sectors as detailed in our sector roadmap. It gets my Neutral rating, which, like my fund ratings, is based on aggregation of stock ratings for each of the 470+ companies in the sector.
Information Technology is my top-ranked sector. As detailed here, only it and the Consumer Staples sector get my Attractive rating. Sector ratings, like fund ratings, are based on aggregation of my ratings for each of the stocks. All other sectors are rated Neutral or Dangerous. The full series of my reports on the Best &…
For those investors interested in rigorous research, I offer my roadmap to the best stocks and funds in the market by sector. The full sector roadmap is here.
In an increasingly challenging market, Intel [s: INTC] is one of the safest investments with compelling upside potential. That’s right, investors get to have their cake and eat it too – at least for now.
Do not be fooled by the recent stock market run-up. Think of it as a set-up for a fall. Investors need to protect their portfolios from the eventual economic decline that will stem from the euro debacle.
David A. Geracioti, Editor-In-Chief of Registered Rep magazine, recently invited me for an interview on why economic earnings matter when selecting stocks, mutual funds and ETFs.