January 4

ASX Sector Performance December 2016

There is one change in our sector rotation strategy this month. GOLD finally slipped out of the Top-3 and has to be sold for a 54.25% profit. The strategy was invested in this sub-sector during the entire year. GOLD is being replaced by ENERGY which made it straight to rank #2. December 2016 yielded a combined profit of 5.15%.

For the full year the strategy performed 22.8%. An initial investment of AUD100’000 on 1 January 2016 would now be AUD122’854.97. This compares to a full year profit of 6.99% in the S&P/ASX-200 (XJO) (11.8% on a total return basis).
As usual returns are without management fees, transaction costs, slippage, taxes and other expenses. Furthermore, you cannot invest directly in indexes. Future performance of this model may differ significantly from historical performance. Performance results are presented for illustration purposes only and should not be understood as a buy recommendation or solicitation for a trade or investment.

Rank Symbol Description* Momentum Score Previous Rank Entry Date Entry Price
1 XMJ MATERIALS 72.5 1 1 September 2016 8653.7
2 XEJ ENERGY 36.5 NEW 1 January 2017 9042.6
3 XFJ FINANCIALS 33.8 3 1 December 2016 6215.2

*Sector indices according Global Industry Classification Standard (GICS®)

There is one change at the Bottom-3 laggards. INDUSTRIALS is the new entry which replaces A-REITs. The new the Bottom-3 laggards are INDUSTRALS (new), HEALTH CARE (remain) and TELECOMMS (remain). HEALTH CARE and TELECOMMS are currently the only sectors with negative momentum.

Read more about this investing style strategy here.

This was our last Special Update for the ASX Sector Performance report. If you have comments or questions please contact us on contact@NotesOnASX.com

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