Stock Market, Sector and Company
- 70% Stock Market – what the U.S. stockmarket did
- 20% Sector – was determined by how the industry group did
- 10% Company – was based on how undervalued and successful the individual company was
The breakdown underscores the difficulty of identifying “hot stocks” and the importance of looking at “market tracker” funds as a way to diversify and avoid the hubris of trying to “beat the market”.