The market’s direction and sector selection determine the vast majority of a portfolio’s return.
Determining which S&P 500 (S&P) sectors will outperform others, however, is difficult. Selecting which sectors will be the best performers in the S&P 500 is an ongoing exercise, but never more so than when a new year is on the horizon.
Every year, the equity market faces disruptive factors. But, 2020 stands apart as one of the most disruptive years on record as a highly contested presidential election came alongside the worst health emergency in a century.