In a broad context, overall asset allocation in an investment portfolio dramatically influences results. Depending upon market conditions, an extremely aggressive or conservative portfolio position can be rewarding. Most often, however, typical portfolio asset allocation is somewhere between these two extremes.
In an equity portion of a portfolio, positioning can make a major difference in overall results. First and foremost, a bullish or bearish posture is the overriding factor. Being significantly on the wrong side of the overall market can impair results
After market direction, sector positioning is the most influential element that alters portfolio results. Achieving maximum positive impact from sector positioning, however, is challenging.