Copenhagen Stock Exchange: Focus: Stock Market Sector Selection – The Key To Better Returns?

In Focus no. 80 entitled ‘Stock market sector selection – the key to better returns?’ Equity Analyst Per Hansen, Jyske Bank, helps you know when to invest and what sectors to invest in. Per Hansen concludes that it is more important to be able to pick the right sectors – especially during periods of either strongly accelerating or decelerating macro economic growth – rather than the right individual shares to maximise returns.

Investors tend to invest in the “good story” instead of a sector theme. However, in times of strongly increasing or slowing growth, this may turn out to be a dangerous strategy. You may easily end up with a portfolio of shares that were low-priced, but which also stay low-priced.

Per Hansen takes the Merrill Lynch “investment clock” and adds a number of facts as regards pricing and investors’ appetite for risk. In an attempt to obtain higher share returns, it is very important to concentrate on sector development.

Read ’Stock market sector selection – the key to better returns?’ in Focus no. 80 on the Copenhagen Stock Exchange’s website www.cse.dk.