Investing is all about avoiding putting all your eggs in one basket.
Usually, the more diversified your portfolio is, the less risk you will bear. However, unless you are a big fund manager, you probably won’t buy more than a dozen stocks at a time. So, finding out the bellwether stocks in each industry is a good bet.
Bank of America Merrill Lynch is here to help. At the end of each year, BAML publishes a list of its 11 favorite stocks for next year – one in each of the 11 Global Industry Classification Standard sectors.