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Strategies & Market Trends : Young and Older Folk Portfolio -- Ignore unavailable to you. Want to Upgrade?

To: stardusting who wrote (537)

12/3/2021 2:02:32 PM

From: chowder

Respond to of 21904

Re: Position Sizing:

It's difficult for me to tell you what percentage of your portfolio should be designated towards any one industry. It would depend on portfolio value, number of positions, willingness to overweight or under-weight certain industries.

You could weight your sectors based on your risk tolerance levels but if you wanted something along the lines of the S&P 500 diversification percentages it would look like this:

Sectors Investment % ... Cat %

Basic Materials	2.20	2.66
Consumer Cyclical	12.78	10.92
Financial Services	12.95	14.68
Real Estate	2.61	2.35
Communication Services	10.27	10.47
Energy	2.72	2.41
Industrials	8.11	10.03
Technology	26.94	23.69
Consumer Defensive	6.09	6.63
Healthcare	12.93	13.96
Utilities	2.40	2.20