After the recent ISM reading of 53 and growing signs of economic stability investors have continued to pile into higher risk assets. According to Goldman Sachs certain sectors within this move into high risk assets will outperform when the ISM shows the economy in expansionary mode. After experiencing recent outperformance in financials and consumer discretionary stocks as ISM troughed and ran up to 50, it may now be wise to shift assets into energy, tech, staples, materials and industrials.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.