Energy: I was successful with Energy in the past (RDS) so I'm
focusing most of my portfolio there (targeting 40% makeup) on oil and
exploration. I'll stay away from natural gas and solar because I personally
don't believe solar is an efficient alternative and I feel natural gas
extraction is riskier since it happens closer to communities (by way of
fracking) versus oil which is pumped out in the ocean or on the other side of
the globe in the Middle East.
Consumer Goods: I plan on buying large cap
non-cyclical for stability and short term holdings of small cap cyclicals for
risky growth. This should comprise 20% of my portfolio and be the riskiest
sector since these companies are usually affected individually and not averaged
over the sector like Energy and Financials.
Financials: This is the other sector I did
well on previously by focusing on the banks. The two areas I'm looking at are
the investment banks and general banks. Since the stock market isn't completely
recovered from fears (waiting until the next presidency), I'm sticking with
general banks for now. My target is 20% financials until the country as a whole
picks up. I figure there will be enough time to get in since first businesses
have to pick up and once they start expanding and hiring more loans will be
taken out.
Technology: I'm a techie and this area
interest me although it's a risky investment because a lot of people don't
understand technology and trade based on headlines or "hot tips." I
plan on holding 10% and will focus more on companies that have a large or
monopolistic web presence. I'm completely avoiding any chip manufacturing as
it's thin margins and I believe speculative.
Industrials: These are the in between
companies similar to consumer goods but their customers are other business and
not the public. I feel like these could be undervalued since you have to
research both the company and the companies buying the products and most
everyday investors would skip over them or trade on incomplete information. I'm
only looking at 10% holdings.
Utilities: I had good runs with regional utilities but my new portfolio will be focused on growth and utilities are more suited for dividend yields. I'd rather store my gains in Energy stocks then Utilities right now.
Healthcare: Avoiding as I find there is too much risk between patents, recalls, disruptive competition, and regulations.
Basic Materials: I'm not too familiar in this sector but I feel it plays more like commodities. Especially with all the gold activity going on. Also there doesn't seem to be much room for growth as these are finite resources and margins are probably very thin.
