Energy could be the new 'tech bubble' - Morningstar

Speaking during a visit to the UK last week, Don Phillips, managing director of Morningstar inc, suggested many investors and intermediaries are unaware of the potential risks their investments could carry as many of today’s fund, even when they are listed in difference sectors, appear to invest in roughly the same types or sectors of stock. More specifically, Phillips argues analysis of stocks held within each fund reveals many funds are currently overweight in energy and manufacturing stocks, so any downturn could affect several of a client’s investments, even where it is thought the p...