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You can also try buying sector funds, like biotechnology or financial services funds.
In 2008, the surf apparel maker Billabong bought Sector 9. Sector 9 is part of an increasingly crowded market that 10 years ago was not much more than a scattered collection of small entrepreneurs.
As a result, investors wishing to develop their exposure to a sector are best advised to buy the sector minus the top company (and are certainly discouraged from just buying the top firm).
We thus remain cautious on the general retailers and maintain that it is still too early to buy the sector.
As such, it would buy the sector time until either confidence in the government returns or a longer-term solution is found.
You can't just buy a sector regardless of names.
A somewhat better but more labor-intensive strategy for your taxable account is to buy several sector funds or ETFs instead of broad index funds.
If you believe the tech recovery is real (I think tech will be flat for a while), buy TechnologySelect Sector SPDR Fund (18, XLK) or Nasdaq-100 Trust (32, QQQ).
In the latter case, it can make sense for long-term investors with substantial portfolios to buy several sector ETFs in areas like consumer staples, health care and energy.
About the only time it makes sense to go further afield and buy a sector ETF: when you have funny money you're willing to lose, and to save on taxes.
It can buy private-sector debt.
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