I know this post is off topic, but I just can't resist pointing this out. Take a look at what you wrote about two months ago.
Now take a look at what's been going on with US banks and SHLD. Will you admit that there's a risk in *underweighting* sectors and stocks about which you haven't done any true research? I'm not saying one should *overweight* sectors/stocks that have bad fundamentals, but there's a risk in underweighting them, which is what you recommend.
He then gave an opinion which you can read here. There are all sorts of things here.
First, I believe I talk quite regularly about being wrong with sector decisions and that I mitigate that possibility, not eliminate but mitigate, by never zeroing out a sector. I've never been zero financials--I have been and still am zero weight in US banks. Our financial exposure consists of a Canadian bank, Chilean bank, an index provider and a foreign stock exchange company all of which adds up to less than the 14.8% currently in the SPX.
Further, I talk frequently about an active portfolio being a series of decisions of which some number will be wrong and some will be correct. If you are correct some reasonable percentage of the time then things are probably going decently in the portfolio. If you are wrong a lot then something probably needs to change.
The reader appears to say I have underweighted the financial sector with out having done any research. If that is what he is saying, then he 180 degrees wrong. If thinks that I am telling other people to make decisions without doing research he is wrong. It says at the top of this page that this site about sharing my process, not making recommendations. A lot of his comment is very selective.
A little more specifically to the comment. On January 13th I wrote that I think the fundamentals of domestic financials stink and I still believe that. My opinion that domestic financials stink is either correct and the last two months has been a good trade (I regularly say there will be good trades along the way) or I am wrong and the financials don't stink. It is one or the other.
Since that post the Financial Sector SPDR (XLF) is up 12.84%. Our financial exposure is assembled such that I hope it will be less volatile than XLF and with a higher yield because of what I think is going on with the sector. The one financial we own that does not pay a dividend is up a hair more than XLF and the other items are up less.
As for the Sears comment and that I don't own it, the stock has skyrocketed up 142%. The title of the January post was What Kind of Buyer Are You, as this blog is about my process; I am not a buyer who buys what I believe are lousy fundamentals. Again the fundies for Sears either are lousy or they are not; this an opinion that will be right or wrong but if I believe the fundamentals do stink then I realize the name could easily go up without me--I've lost no sleep over this.
One last point is that the way I manage portfolios, it will be very rare that any opinion I might have about something will be proven right or wrong in two months.