Chart of the week: Pick the right stockmarket sectors

As the tumbling oil price has shown, it pays to back the right stockmarket sectors during a recovery.

721-world-index

(Source: The Economist)

The tanking oil price "is a useful reminder for investors that it helps to pick the right industries", notes Buttonwood in The Economist.

Avoiding the worst-performing stockmarket sectorsin the MSCI World Index each year since 2007 would have yielded a 66% return. The index as a whole has risen by just 32%. Defensive sectors have done best, with health care and consumer staples topping the table.

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