What sectors of the S&P500 should be active now?

Robert Phelan, CFA, GARP |

If you are interested in an actively managed financial plan, want to be involved in how those assets are managed and have more than $1 million to invest, give Concierge Financial Advisor, LLC a call at 813-436-3600.

“Asset allocation is a very important part of creating and balancing your investment portfolio.  After all, it is one of the main factors that leads to your overall returns—even more than choosing individual stocks.  An appropriate asset mix of stocks, bonds, cash, and real estate in your portfolio is a dynamic process."(1)

As such, the asset mix should reflect your goals, portfolio risk profile, and the environment at any point in time.  We offer strategic & tactical asset allocation with periodic rebalancing or inflection point risk adjustments at market momentum inflection points.

“ U.S. stocks have clawed back a significant proportion of their losses from the first half of the year, but the three major equity indexes tumbled this week under reviving fears about interest-rate increases by the Federal Reserve, and there are signs that the bulk of the bear-market rally is already behind us, said Citigroup’s analysts.

According to strategists at Citi Research, the current bear-market rally is almost in line with the length of an average bear-market bounce, and sentiment has already improved as much as it typically does during regular bear-market rallies, which would suggest a possible end to the rally relatively soon."(2)


Q3 2022 Active Tactical Sectors with Concierge Financial Advisor, LLC’s Portfolios

The following list is an example of ETFs or individual stock holdings currently chosen as part of the tactical model by the investment portfolio manager at Concierge Financial Advisor, LLC.  The percentage of the portfolio allocated to sectors must be chosen to match the client’s objectives, risk tolerance, values, and needs described and agreed to in their financial plan.

The following sectors are defensive and value-oriented:

Dividend and Income Style ETFs, Energy, Health Care, Utilities, and Short-Term Fixed Income.

Our tactical model is using hedges to reduce stock market risk and focusing on defensive sectors for the remainder of 2022.


As an investor, are you aware of your top sector exposures as compared to the S&P500 distribution and your investment advisor’s rationale for being overweighted or underweighted relative to that index?  If not, you’re your asset allocation profile is purely based on your advisor’s strategic model and a long-term risk profile.

At Concierge Financial Advisor, LLC, we manage with a long-term view, but we get there by managing the medium and long-term risk-adjusted expected returns through both tactical and strategic models, respectively.



  1. Team, The Investopedia. “6 Asset Allocation Strategies That Work.” Investopedia, Investopedia, 28 July 2022, https://www.investopedia.com/investing/6-asset-allocation-strategies-work/.
  2. Wang, Isabel. “These Are the Signs That the Bear-Market Rally in Stocks Won't Last Long, According to Citigroup.” MarketWatch, MarketWatch, 19 Aug. 2022, https://www.marketwatch.com/story/here-are-the-signs-that-the-bear-market-rally-in-stocks-wont-last-long-citi-11660937380#:~:text=According%20to%20Citi%20Research%2C%20a,subsequently)%2C%E2%80%9D%20wrote%20strategists.