What sectors survived in full or in part during the market correction? As you recall, Consumer and Financials were the top two picks when last updated. Will these two sector ETFs continue to hold the top spots?
Vanguard Sectors: Consumer (VCR) still holds the number 1 position among the Vanguard sector ETFs. While Energy (VDE) is ranked #2, it is not recommended for purchase as the Projection-Convolution is insufficiently high. Instead, VFH holds on to the second most recommended sector ETF from Vanguard. Therefore, there are no changes among the Vanguard sectors. Will Fidelity follow the same path?
Fidelity Sectors: Consumer Discret (FDIS) holds a commanding lead over all other sectors from Fidelity. As with Vanguard, Energy ranks second but falls short when using the Projection-Convolution ranking system. Financials (FNCL) is the second recommendation for purchase.
Vanguard and Fidelity sectors match up insofar as the Kipling LRPC recommendations. When putting together a portfolio that follows the LRPC Momentum Model, I recommend including VCR and VFH as possible contenders for purchase. Fidelity clients will select FDIS and FNCL.