Okay, here are my current industry ranks:
Remember, my model can be used in two ways: in the red zone, for short term momentum players. (Look at all of those relatively stable predictable industries.) Or, the green zone, for value/contrarian players. (Look at all of those cyclicals and financials.)
Which do you think will do better? Mean reversion or relative safety? My portfolio is spread across both, so I don’t have a dog in that fight. I do think that portfolios in this environment have to aim to be self-financing, avoiding the need for capital raises in an environment where capital is scarce.
Away from that, I am still not a believer in financials, aside from insurers, and I don’t see much good among housing or autos, regardless of who gets bailed out.