Now's a Good Time to Reduce Your Utilities 'Bill'

Many fund managers are looking for the sectors, groups and industries that are outperforming to overweight, and the ones that are underperforming to underweight. They can use various fundamental and, yes, even some technical tools, in this effort. Relative strength is one of these tools.

Relative strength has been used for several decades and there is a large body of academic research that shows it works. The process is relatively simple: you compare the price performance of the sector to the S&P 500. If the sector (or industry, group or company) is up 35%, let's say, and the S&P is up 25% over the same period, the sector is outperforming and we would probably want to overweight it in our portfolio....347 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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