RE:Financial Post (Peter Hodson) Articleretiredcf, Peter Hodson wrote The best strategy: Keep a sector weighting you are comfortable with — 10% to 15% is plenty. Buy good, growing companies with solid balance sheets.
Not sure I would agree with that. What is the energy weighting in the TSX? If it is 20%, then a market weight would be 20%. Why would you underweight a sector near the bottom of a cycle. Many financial advisors advise clients to re-balance portfolios based on market weights. The time to reduce a sector position is after a period of dramatic outperformance (i.e. last June), not after a sector collapse. Buy low, sell high works very well; buy high, sell low, not so well.
I suspect many of the posters here have an energy weighting higher than 10 - 15%.