Source: QAD Blog
A perfect way to end the 2022 annus horriblis is to remind readers that not just individual stocks, but entire sectors fall in and out of favor. It iss extremely challenging to select the right sector at the right time (and for the right reasons).
Almost nobody does this well consistently over time.
Here is QAD from 2019:
In business, change is inevitable, and those that fail to adapt and innovate are often doomed to failure. One of the best ways to observe this concept is by tracking changes in the S&P 500 Index. The S&P acts as a snapshot that illuminates which companies and industries are the largest in the economy at any given time.
By looking at five decades worth of changes to the component companies that make up the S&P, we are able to observe and illustrate trends and shifts in the economy. These changes can be seen on smaller yearly levels as well as bigger-picture views that look at change over decades or more.