 |
 |
|
Our picture of the markets is quite different from that of other asset
managers. We use an evaluation system that includes earnings, growth rate,
beta, and AAA bond yield to analyze our database of companies included in the
147* separate industries in Standard and Poor's Industry Codes and divided
among the nine basic market sectors.
|
 |
We apply this system to approximately 2,000 domestic** and approximately 2,300
foreign securities included in our universe. We then compare these securities'
valuations to their current market price to arrive at a value-to-price ratio
for each name, and, in turn, to develop a composite value-to-price ratio for
each of the 147* industries.
By comparing industry performance to market performance, ICON seeks to
calculate "relative strength" as a measure of performance and to identify
industries that demonstrate leadership against the current market, whether
domestic or international. We believe this combination of being underpriced
relative to fair value and having relative strength in line with or greater
than the broad market puts certain industries and securities in a favorable
position to outperform the market average and to capture market themes.
Finally, a value-to-price ratio is computed for all of the domestic and foreign
stocks in our universe to determine whether the entire U.S. market and foreign
markets are overpriced or underpriced.
 Historical
Sector Performance (PDF)
Next Page:
Industry Rotation Creates Opportunities | 1,
2,
3
|
 |
| *As of June 30, 2007. This number may vary over time. |
| **As of June 30, 2007 ICON had approximately 2,060 securities in its investable
domestic database. This number may vary over time. |
|
|
|
|
|
© 2008 ICON AdvisersSM. All rights reserved.
|
|
