Weighty Matters

Portfolio performance is driven almost as much by both capital and sector allocation as it is by good stock picking. Being underweight or overweight the right asset classes and  sectors is a critical key of outperforming the market over the long term.

Every quarter, I review my entire portfolio to see how I am currently allocated and make adjustments based on where I think the market will go over the next three to six months. This week, I'll discuss how I have adjusted the sector allocation in my portfolio recently. Today's and Tuesday's column will focus on a couple of sectors I am underweighting right now due to what I perceive as poor conditions that companies in these areas are liable to face for the rest of the year and into 2014. On Thursday and Friday, I plan to talk about a couple of sectors I am currently overweight....454 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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