Kathy's equity portfolio invested 55% in the Technology sector, 32% in the Mining & Resources sector, and
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Kathy's equity portfolio invested 55% in the Technology sector, 32% in the Mining & Resources sector, and 13% in the Consumer Staples industry, such as businesses selling food and groceries, etc. The stock market has experienced a boom for the past several months; however, recent economic data suggests that the economy is slowing down, and it may head towards a recession within a year. Kathy asked you for investment advice.
- Using your knowledge of sector rotation strategies, will you advise Kathy to change her current portfolio holdings? Why or why not? Briefly discuss your answer with justifications.
- Suggest two sectors in which Kathy may invest to get better returns in the forecasted economic condition. Explain your answers with justifications.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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