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| Assessing opportunities in the broader market | |||
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In running analyses using the Rank Portfolio tool, the output provides a measure which can be used in assessing the strength of the broader market This 'Weighted expectation' generates a relative assessment of the proposed portfolio on a scale of -100 to +100 If the user inputs a portfolio with stocks in |
each of the 12 different market sectors, the resultant measure
will be a relative measure of the broader market in the coming
period. By tracking this measure over time, you can get a
'feel' for the strength and weakness of the market's prospects
and make adjustments in exposure and strategy
If, on the other hand, a user's portfolio is exclusively invested in the technology sector, |
the Weighted expectation measure can be used to track prospects
in that sector over time
An actual portfolio can be used to track this measure, or one or more synthetic portfolios can be structured to follow prospects in whatever market sector mix may be desired The market segmentation which is |
used, and sample stocks in each sector are: Technology (IBM),
Transportation (AMR), Services (AMZN), Basic Materials (DD),
Consumer Cyclical (F), Conglomerates (GE), Energy (MDR),
Consumer Non-cyclical (LU), Healthcare (MRK), Financial (C),
Capital Goods (BA), and Utilities (ED)
Shares of stocks from this list can be input to achieve the desired mix |