Question

You have each been assigned a sector of the economy to develop a sector based mutual fund. ( I was assigned to Industrial Machinery & Equipment, SIC Code:35)

1. What is your sector(Industrial Machinery & Equipment), and do you expect your sector to outperform the S&P500 over the next 2 months? Why or why not?

2. Do you expect that the companies you have chosen for your fund will outperform the sector in general over the next 2 months? Why or why not?

Answer 1

1.My sector is pharmaceutical industry which is considered to be a defensive sector and provides as a hedge against volatility in the market.

I expect pharmaceutical sector to outperform the market as in such chaotic Market conditions,the people are expected to have exposure to sectors like pharmaceutical which provides with medicine in such health like crisis.

2.The companies which i have selected are Merck, Abott, Sanofi and other companies which are assigned with the tasks of finding the vaccine for corona and business as these companies are still operational and so these companies are expected to outperform the overall sector.