CHICAGO, Dec 23 (Reuters) – This year, the stock market has
been glowing as brightly as the seasonal lights that now bedeck
But if you want your investments to keep doing well in 2014,
look away from the shiny stuff. If the winners of 2013 follow
historical patterns, they won’t sustain their market-beating
performances next year.
Consider the most stellar performer of 2012.
As housing rebounded, the iShares U.S. Home Construction ETF
was the place to be in 2012. It led the pack with a nearly 80
percent return for the year, as companies like PulteGroup Inc.
, Lennar Corp. and D.R. Horton, Inc. made up for
time and big money lost to the housing crisis.
This year, the housing market was even stronger than it was
in 2012, but investors in the iShares ETF didn’t share the
The hot, institutional money had moved onto other sectors
and the fund returned 11 percent to investors through Dec. 20 -
less than one-third of the 36-percent returns investors in
consumer cyclical stocks saw, according to Morningstar.