Orwell famously wrote that some animals are more equal than others. As it turns out, during certain months some stock-market sectors are more equal than others. Let’s take a closer look at the month of November
November Sectors
I have my own methods for analyzing sector performance. Based on these factors, the top sectors (using Fidelity Select Sector funds) for November are:
- FCYIX – Industrials
- FBSOX – IT Services
- FSRPX – Retailing
- FSHOX – Construction & Housing
- FSPHX – Health Care
Figure 1 displays the growth of $1,000 invested in these sector funds only during the month of November since 1986 (note that FCYIX started trading in 2003 and FBSOX in 2004).
Figure 1 – Growth of $1,000 invested in top November sectors
- This portfolio has showed a gain in November 23 times (74%) and a loss 8 times (26%). Since 1994 the record is up 19 times and down 3.
- The average UP November was +4.3%
- The average DOWN November was -3.7%
- The 3 largest gains were +11.3% (1990), +9.9% (2001) and +6.7% (2009)
- The 3 largest losses were -8.0% (1987), -7.2% (2008) and -5.0% (2007)
Figure 2 – 5-Sector November +/-%
Summary
Will this 5-fund portfolio show a gain or a loss in November 2017? There is no way to predict. Still, for investors looking for an edge, these sectors might be an interesting place to look.