June 7, 2021: “Good” S&P Sectors
by MyPlanIQ | Jun 8, 2021 | Asset-Allocation, Bonds, Economy, Feature, Gold, Headline, Income, Inv, Investments, IRA, Markets, Mutual-Funds, newsletter, Portfolios, Retirement
Re-balance Cycle Reminder All MyPlanIQ’s newsletters are archived here.
Regular AAC (Asset Allocation Composite), SAA and TAA portfolios are always rebalanced on the first trading day of a month. the next re-balance will be on Thursday July 1, 2021.
As a reminder to expert users: advanced portfolios are still re-balanced based on their original re-balance schedules and they are not the same as those used in Strategic and Tactical Asset Allocation (SAA and TAA) portfolios of a plan.
“Good” S&P Sectors
We prefer looking at a stock index such as S&P 500 as a conglomerate business. We have looked at the fundamentals (Return on Equities and earnings) of several S&P 500 sectors and its own index in the past. For those who are not familiar, here are some past newsletters on this subject:
In this newsletter, we want to expand this a little bit and look at several ‘good’ sectors and how to use index ETFs for these sectors to construct a tactical portfolio. We show that one can use these ‘good’ sectors to construct a portfolio that can outperform S&P 500 index itself both in terms of returns and risk.
Historical earnings of S&P 500 sectors
As in the past, we look at the latest S&P 500 sector earnings from Yardeni Research. The following shows the historical earnings per share for S&P 500 11 sectors: