That leaves us with the obvious question..
What actually goes wrong when we pick the top funds of the past few years?
The rotating sector winners..
Below is a representation of the best performing sectors year over year. What do you notice?
The sector performance over each and every year varies significantly and the top and bottom sectors keep changing dramatically almost every year.
- 2007 – Metals was the top performer with a whopping 121% annual return
- 2008 – Metals was the bottom performer with a negative 74% returns & FMCG was the top perfomer (-21%)
- 2009 – The tables turned! FMCG was the bottom performer (47%) while Metals was the…
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