Sector Rotation: Constructing a Suitable Portfolio According to the Macroeconomic Environment

Sergey Okun  This article was written by Sergey Okun – Senior Financial Analyst, I Know First, Ph.D. in Economics.

Summary:

  • Different stages of the stock market require stock selections that are more suitable in the current macroeconomic environment.
  • The strategy based on sector rotation in periods of expansion and recession can generate an additional excess annual return compared with the stock market return.
  • I Know First provides the ETFs package based on the AI algorithm to find the most promising investment opportunities according to the macroeconomic environment.

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Defensive Stocks: Up to 50.55% return in One Year

Package Name: Risk-Conscious
Forecast Length:  One Year (8/08/2014 - 8/08/2015)
I Know First Average: 15.20%

See The Full Forecast

Defensive Stocks

Best Defensive Stocks Based on Algorithms: 5.11% (Long) and 8.15% (Short) in 1 Month

Best Defensive Stocks Based on Algorithms

This conservative investment strategy is part of the "Risk-Conscious" package, as one of I Know First's quantitative investment solutions. We determine our conservative stock picks by screening our database daily for lower volatility stocks that are less risky. The full Risk-Conscious Package includes a daily forecast for a total of 40 stocks with four main categories:

  • top 10 conservative stocks to short
  • top 10 conservative stocks to long
  • top 10 aggressive to short
  • top 10 aggressive stocks to long

Recommended Positions: Long & Short

24 07 2013 10 48 51 Best Investments Based on Algorithms: 8.19% Gain in 14 DaysForecast Length: 1 Month (12/14/14 – 1/14/15)

I Know First Average: 0.52% (Long) & 1.17% (Short)

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 conservative long & 10 short  jan 15

Defensive Stocks: 96% Return in 1 Year

Package Name: Risk-Conscious
Recommended Positions: Long
24 07 2013 10 48 51 Best Investments Based on Algorithms: 8.19% Gain in 14 DaysForecast Length: 1 Year (9/27/2013 – 9/27/2014)
I Know First Average: 21.94%

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defensive stocks

Defensive Stocks: 92.58% Return in 1 Year

Package Name: Risk-Conscious
Recommended Positions: Long
24 07 2013 10 48 51 Best Investments Based on Algorithms: 8.19% Gain in 14 DaysForecast Length: 1 Year (9/22/2013 – 9/22/2014)
I Know First Average: 21.67%

                        Get the "Risk-Conscious" Package.

defensive stocks  (September 22th)

Defensive Stocks: 107.84% Return in 1 Year

Top Conservative Stocks

Recommended Positions: Long
24 07 2013 10 48 51 Best Investments Based on Algorithms: 8.19% Gain in 14 Days Forecast Length: 1 Year (8/6/13 – 8/6/14)
I Know First Average: 27.00%