The Best Offense was a Good Defense this Year

One of the big trend changes I caught circa April of this year and never let go of was that defensive sectors had begun meaningfully outperforming cyclical sectors.

This was a key theme of mine all year, I still have almost zero exposure to large cap growth, small cap or emerging markets in the core portfolios I’m managing.  The momentum names were all slaughtered in the second half of the year, having admittedly missed the run-up last spring, I also missed the hangover.  Being overweight dividend payers drove you to a portfolio heavily-weighted toward defense, as the traditional dividend payers – the banks –  have been out of that game.

We have 11 months worth of data in but more than enough to say that in 2011, the best offense has been a good defense.  Have a look at the top three sectors year-to-date (via Morningstar):

December is typically a pro-cyclical and high beta-favoring month.  We’ll see if that cohort can make a comeback, but I’m staying underweight for the meantime until the global growth outlook becomes clearer.

 

 

 

What's been said:

Discussions found on the web
  1. Dumps Shop 2020 commented on Sep 27

    … [Trackback]

    […] Read More Info here on that Topic: thereformedbroker.com/2011/12/01/the-best-offense-was-a-good-defense-this-year/ […]

  2. cheap sex dolls little girl used commented on Dec 08

    … [Trackback]

    […] Read More on on that Topic: thereformedbroker.com/2011/12/01/the-best-offense-was-a-good-defense-this-year/ […]

  3. 뉴토끼 commented on Dec 18

    … [Trackback]

    […] Information to that Topic: thereformedbroker.com/2011/12/01/the-best-offense-was-a-good-defense-this-year/ […]

  4. td trust login commented on Dec 20

    … [Trackback]

    […] Read More Information here on that Topic: thereformedbroker.com/2011/12/01/the-best-offense-was-a-good-defense-this-year/ […]

  5. imitation copy and panerai and watch commented on Dec 31

    … [Trackback]

    […] Find More here on that Topic: thereformedbroker.com/2011/12/01/the-best-offense-was-a-good-defense-this-year/ […]

  6. qq poker commented on Jan 13

    … [Trackback]

    […] Info on that Topic: thereformedbroker.com/2011/12/01/the-best-offense-was-a-good-defense-this-year/ […]

  7. ISimple IS76PRO manuals commented on Jan 21

    … [Trackback]

    […] There you will find 6135 additional Information to that Topic: thereformedbroker.com/2011/12/01/the-best-offense-was-a-good-defense-this-year/ […]

  8. Behringer Rev2496 manuals commented on Jan 23

    … [Trackback]

    […] Info on that Topic: thereformedbroker.com/2011/12/01/the-best-offense-was-a-good-defense-this-year/ […]

Read this next.