Index AIM Precious Metals Fund (IGDAX), 196 American Association of American Investors (AAII), Asset Allocation Survey, 6­7 Asset allocation, 145­146, 197­208 aggressive portfolio examples, 198­199 balanced portfolio examples, 200 moderate portfolio examples, 199 problems with, 197­198 return expectations, 201­208 theory, 145­146 Asset management industry, investment in, 132­134 Balance sheet analysis, 164­167 Banking industry, investment in, 128­131 Basic materials sector, classification of, 42 Beta statistic, 37­41 Beverages industry, investment in, 96­97 Biotechnology industry, investment in, 62­63 Bond ladder, 156 Bond Price Competition Improvement Act, 153 Bonds, 22­23, 146­157, 195 broker fees, 153 corporate, 147­157, 195 Credit Suisse Company Yearbook, 149, 151 government, 22­23, 146­150 historical returns, 150­157 investment in, 146­157 investment selection of, 195 Prudential Short-Term Corporate Fund (PBSMX), 195 risk percentage, 150­157 trading (corporate), 153­154 yields, importance of, 22­23, 148­150 Bottom-up valuation, 175­176 Brinson Partners studies, 30­31 Broadband growth, technology sector and, 108­110 Broker fees, corporate bonds, 153 Commodities, investment in, 160­162, 195­196 investment in, 160­162 investment selection of, 195­196 Vanguard Precious Metals & Mining Fund (VGPMX), 195­196 Computer hardware and equipment industry, investment in, 112­114 Computer software industry, investment in, 115­116 Consumer discretionary sector, classification of, 42 Consumer staples sector, 42­43, 89­105 beverages industry, 96­97 case study for analysis of, 100­105 classification of, 42­43 financial strength of, 92­93 food products industry, 94­95 global growth opportunities and, 91­92 guidelines for investment, 99­100 household products industry, 97­98 performance history, 89­90 product reliability of, 92­93 profit growth consistency and, 90­91 retailing industry, 93­94 sub-sector investment analysis, 93­99 tobacco industry, 99 Corporate bonds, investment in, 147­157 Corporate profit margin analysis, 17­18 Credit card servicing industry, investment in, 136­137 Credit Suisse Company Yearbook, 149, 151 Current ratio, 165 Demographics, 52­54, 126­127 financials sector and, 126­127 health care sector and, 52­54 Dividends,18­22, 158 real estate investment trusts (REITS), 158 total returns, importance of in, 18­22 Dreyfus Premier Technology Fund (DGVRX), 194 Earnings per share (E.P.S.), 26­28, 167 growth rate, 26­28 income statement analysis, 167 Economic factors, health care sector and, 56 Energy sector, 43, 73­88 case studies for analysis of, 83­88 classification of, 43 financial position, strength of, 77 future supplies and, 74­77 global demand and, 74­75 guidelines for investment, 82­83 inflation hedge, strength of, 77­78 oil and gas drilling industry, 80­81 oil and gas exploration and production industry, 81­82 oil and gas industry, integration of, 78­79 oil and gas refining and marketing industry, 82 215