6 best sectors for now

That at least is the collective judgment of the select few advisers I monitor who have the best records over both the long-term as well as the last year. They’re worth paying attention to, in other words, since they have not only proven themselves over a long-enough period as to make it unlikely that their good performance is due to luck alone, but they also are playing a hot hand currently.

The sector bets that these top advisers are making also bode well for the overall market, furthermore. That’s because, according to Ned Davis Research, the finance sector tends to be one of the worst performers in the three months prior to major market tops. That the top performers find so much to like in this sector is encouraging, on the theory that the next market top will live up to this historical pattern and that the top performers are more likely to be right than wrong.
TRADING STRATEGIES: JUNE
MarketWatch illustration/Terrence Horan
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• The six best sectors for 2015’s second half

To construct my subset of top advisers, I first took all those on the Hulbert Financial Digest’s monitored list who have beaten a buy-and-hold in the stock market over the first 14 of the last 15 years. I then narrowed the list even further by taking the 15 of these longer-term market beaters who have had the best returns over the last 12 months.

Below are the six industry sectors (as defined by three-digit SIC codes) that have the largest number of buy recommendations from these 15 top-performing advisers. In each of these sectors, I list those individual stocks that are most popular.

Electronic Components & Accessories
—Skyworks Solutions SWKS, +0.20%

—NXP Semiconductors NXPI, -0.53%

Drugs
—Gilead Sciences GILD, +0.12%

—Johnson & Johnson JNJ, -0.50%