Question

You have each been assigned a sector of the economy to develop a sector based mutual fund.

1. What is your sector, and do you expect your sector to outperform the S&P500 over the next 2 months? Why or why not?

( I was assigned to SIC Code: 36 Electronic And Other Electrical Equipment And Components, Except Computer Equipment)

2. Do you expect that the companies you have chosen for your fund will outperform the sector in general over the next 2 months? Why or why not?

Answer 1

As we know , the whole world is suffering from epidemic covid-19. In this crises we, can't expect so much from the market. But we can not be pessimist also. Let's hope for sunshine again.

At this situation , economy is in downfall situation. Whole world is threatened with the spreader disease. S&P is also expecting a huge downfall , if we consider the available data on a month, it is -12.15%, which is huge loss.

While we consider investment in mutual fund , I would prefer to invest in financial services sector.

The financial services sector comprised of companies that offer services broadly aimed at providing loans, insurance and money management services for individuals and firms.

List of financial sector service companies includes retail and commercial banking, accounting, insurance,asset management, credit cards and brokerages.

Financial sector is much less credit sensitive in 2020. Despite the sector's relatively high quality yield, the financial sectors trades at the steepest forward earning multiple discount to the S&P 500 of any sector.

Bank of America has an "overweight" rating for the financial sector.

Out of 8 best stocks financial and industrial should lead the charge.

-Virtus Kar Small-cap growth s top among U.S. diversified stock.

- Fidelity Advisor growth opportunities

-Berkshire Focus

-Morgan Stanley institutional global opportunities

-Allianz GM Convertible institutions

Berkshire has an enviable long term track record compared to S&P 500.

Berkshire outperformed the S&P 500 by a wide margin of 10.8% between 1965 and 2018on an annualized basis.

We can read the historical data and watching it's past performance of Berkshire