Australian (ASX) Stock Market Forum

Good Sector in ASX?

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7 July 2004
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Dear All,

What sector at the moment will you consider the good sector to invest?

is Technology sector going to get beter in the near future?
 
Dear All,

What sector at the moment will you consider the good sector to invest?

is Technology sector going to get beter in the near future?

That is an excellent question mate, and I must apologise on behalf of all ASF members for taking so long to reply.

With China still going gangbusters I would guess Materials at present although, Information Technology and Biotech would be reasonable. And this is not advice, but just my guess.

Then again China could go backwards.

gg
 
After doing lots of research into sector rotation, I prefer to let the market tell me which is the good sector. Industry/sector based momentum strategies are well documented in the financial research literature. Strategies seem relatively simple, such as sorting by 6 month ROC each month and holding the top decile or quartile of performers. You can find some really good ones on the net if you poke around a bit. There are even ETFs on the NYSE based on the concept. In this way, I never have to ask "which is the good sector?". I can quantify the answer using many metrics (momentum, value, liquidity, etc).
 
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