In my ebook The Bedokian Portfolio, I constantly harped on diversification of asset class and foreign financial markets, but I did not touch much on sector diversification. In this blog post, I would share a bit on the sector aspect. What is a Sector According to Investopedia, sector, or sometimes called the industry, is “… an area of the economy in which businesses share the same or a related product or service. It can also be thought of as an industry or market that shares common operating characteristics”¹. In the degree of diversification for The Bedokian Portfolio, sector comes below region/country, since the same sector could perform well in one country but may not be in another. There are a few ways to define sectors. One way is to classify them by primary, secondary and tertiary, which are companies related to raw materials, processing and manufacturing, and services, ......