November Sector Focus

 | Oct 24, 2017 12:34PM ET

Orwell famously wrote that some animals are more equal than others. As it turns out, during certain months some stock-market sectors are more equal than others. Let’s take a closer look at the month of Novemberh3 November Sectors/h3

I have my own methods for analyzing sector performance. Based on these factors, the top sectors (using Fidelity Select Sector funds) for November are:

  1. FCYIX – Industrials
  2. FBSOX – IT Services
  3. FSRPX – Retailing
  4. FSHOX – Construction & Housing
  5. FSPHX – Health Care

Figure 1 displays the growth of $1,000 invested in these sector funds only during the month of November since 1986 (note that FCYIX started trading in 2003 and FBSOX in 2004).

Figure 1 – Growth of $1,000 invested in top November sectors

  • This portfolio has showed a gain in November 23 times (74%) and a loss 8 times (26%). Since 1994 the record is up 19 times and down 3.
  • The average UP November was +4.3%
  • The average DOWN November was -3.7%
  • The 3 largest gains were +11.3% (1990), +9.9% (2001) and +6.7% (2009)
  • The 3 largest losses were -8.0% (1987), -7.2% (2008) and -5.0% (2007)

Figure 2 – 5-Sector November +/-%