Credit Suisse’s Global Investment Returns Yearbook 2015 is a must read for investors. This year, the yearbook contains some extremely interesting long-term (115 years) data on industries.
Changing industries
Today, in the US and UK markets only the banks and mining industries have weightings close to their 1900 levels. Industries have risen and fallen as technology has advanced, but industries remain one of the original and most important factors in portfolio organization. When fund managers build, alter, or report on portfolios, they refer to industry weightings. So, getting these weightings right -- or wrong -- has consequences. Industry membership is the most common method for grouping stocks for portfolio risk management, relative valuation and peer-group valuation.
Credit Suisse’s research team covers...
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