High number of funds in sector or region is warning sign to pull out

Last month, I described how unit trust investors' decisions on when to invest could be used profitably to do the opposite. I calculated that their poor market timing in their home market had cost an average 4.4% under-performance per year for the past 15 years. This month, I will analyse if their decisions on where to invest can similarly be used profitably to do the opposite. Official government statistics were very helpful for last month's analysis, but the Office of National Statistics does not produce sufficiently detailed information for this task. Fortunately, Standard & Poor's funds...