Homrich & Berg sector model favors overweight energy, tech, materials in 2026 equity allocations
SPY•Backtest and framework
Model backtest to 2010 showed 115 bps annualized sector-allocation alpha; outperformed in 67% of years.
The framework uses the Bloomberg 1000 equal-weighted universe; factors combine price momentum, earnings trends and relative valuations with semiannual rebalancing.
Sector model keeps overweights in energy, technology and materials
Homrich & Berg’s July 27, 2026 sector model kept overweights in large-cap energy, technology and materials; underweights communications, real estate and financials.
Earnings trends drove the ranking; commodity-linked sectors benefited from higher prices while tech retained most early AI winners.
Rate-sensitive groups faced risk from possible rate hikes; communications lagged as hyperscalers lost appeal amid capex concerns.
