Sector Analysis for Week Ending 12 17 10

Most GWM Model Portfolios include an allocation to equities. The equities allocation is subdivided into sub-sections that utilize different management strategies. One of these sub-sections or categories is titled "Equity Sector Rotation". Sector Rotation strategies can be a very effective long term.

The S&P 500 is comprised of companies involved in different industries; these various industries can be differentiated by sector, i.e., Energy, Healthcare, Materials, etc.  We monitor the market to identify the best performing sectors at the moment. Our strategy is to rotate into the top performing sectors.

As illustrated in the chart below we can clearly see that the materials sector, energy sector and consumer discretionary sector were among the best performers last quarter. The second chart examines last week's performance alone. It shows that investors have been rotating into the consumer staples and healthcare sectors. This gives us an indication that investors may be getting more defensive as the year comes to an end.

(Click on chart to enlarge it for easier viewing)

Last Quarter S&P 500 Sector Performance -

Last Week's Sector Performance -

GWM Private Investment Management