JOURNAL OF APPLIED BUSINESS AND ECONOMICS
Higher Return from Investing in the Worst Performing Sector:
Evidence from the S&P Ten Sectors
Author(s): Anthony Yanxiang Gu
Citation: Anthony Yanxiang Gu, (2014) "Higher Return from Investing in the Worst Performing Sector: Evidence from the S&P Ten Sectors," Journal of Applied Business and Economics, Vol. 16, Iss. 1, pp. 26-31
Article Type: Research paper
Publisher: North American Business Press
Abstract:
Four investment strategies are tested using the S&P Ten Sector Indexes. At the end of each quarter,
investing in the top performer of the quarter results in the lowest rate of return among the four strategies;
investing in the bottom performer of the quarter and hold through the following two quarters results in
the highest rate of return among the four strategies. This implies that investors should not chase the
reported top performer.