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

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

by Timothy J. McIntosh
Publisher: John Wiley & Sons
Release Date: April 2012
ISBN: 9781118171905
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Book Description

Using Asset Allocation to Reduce Risk and Boost Investing Returns

Presenting a revolutionary new investment philosophy that redefines how we view sector investing, The Sector Strategist challenges long held ideas about how this unique area of finance operates. Misconceptions, such as the belief that international stocks provide diversification, are preventing investors from making the most of the opportunities for financial growth that sectors provide, and the book presents practical, applicable evidence that a better, more profitable option is available. Additionally, the book hopes to give readers an opportunity to improve returns and protect retirement assets by providing a wide range of techniques and tools designed to optimize wealth that the author has developed over the last decade.

  • Designed to help investors avoid the often inaccurate assumptions made by "experts" which promote typical asset allocation

  • Written by Timothy McIntosh, investment expert and founder of SIPCO/Strategic Investment Partners, whose firm's stock portfolio has earned five-star returns from Morningstar annually since 2003

  • Contains easy-to-apply tools for wealth protection and growth that have been proven successful during the market fluctuations of 2002 and 2008

The history and opportunities afforded by sectors have been written about at length, but no book has broken with tradition so radically, and with such success, as The Sector Strategist.

Table of Contents

  1. Cover Page
  2. Title Page
  3. Copyright
  4. Contents
  5. Introduction
  6. CHAPTER 1: The Return Dilemma
    1. Importance of the P/E ratio
    2. Company Growth Rates
    3. Conclusions about P/E Ratios and Subsequent Returns
    4. Importance of Dividends in Total Returns
    5. Gazing into the Future
  7. CHAPTER 2: Sector Allocations
    1. International Investing
    2. Sector Volatility
    3. Major Sectors
    4. Utilizing Sectors in Market Cycles
    5. Sector Performance
  8. CHAPTER 3: The Health Care Sector
    1. Reasons to Own a Health Care Firm
    2. Additional Factors
  9. CHAPTER 4: The Energy Sector
    1. Global Demand
    2. Future Supplies
    3. Strong Financial Position
    4. Strong Inflation Hedge
    5. Sub-Sector Analysis
    6. Investing in the Energy Sector
    7. Stock Selection Case Studies
  10. CHAPTER 5: The Consumer Staples Sector
    1. Consistent Profit Growth
    2. Global Growth Opportunities
    3. Strong Financials and Reliable Products
    4. The Consumer Staples Retailing Industry
    5. The Food Products Industry
    6. The Beverages Industry
    7. The Household Products Industry
    8. The Tobacco Industry
  11. CHAPTER 6: The Technology Sector
    1. Sectoral Factors
    2. Broadband Growth
    3. Government Spending
    4. Strong Financial Characteristics
    5. Sub-Sector Analysis
    6. Investing in the Technology Sector
  12. CHAPTER 7: The Financial Sector
    1. Sectoral Factors
    2. Demographics
    3. Globalization
    4. Low Interest Rates
    5. Sub-Sector Analysis
    6. Investing in the Financial Sector
  13. CHAPTER 8: Bonds, REITs, and Commodities
    1. Bonds: Corporates Are Worth the Risk
    2. Corporate Bonds Risk Components
    3. REITs: A Separate Asset Class?
    4. Commodities and Gold
  14. CHAPTER 9: Fundamental Analysis
    1. The Balance Sheet and the Income Statement
    2. Valuation Approaches
    3. Intrinsic and Relative Valuation
  15. CHAPTER 10: The Selection Process
    1. Diversify across the Major Recommended Sectors
  16. CHAPTER 11: The Right Allocation
    1. Aggressive Portfolio
    2. Moderate Portfolio
    3. Balanced Portfolio
  17. Endnotes
    1. Chapter 1
    2. Chapter 2
    3. Chapter 3
    4. Chapter 4
    5. Chapter 5
    6. Chapter 8
    7. Chapter 9
    8. Chapter 10
  18. About the Author
  19. Index