Money rotates from sector to sector and last year’s sectors tend to pass the torch to subsequent years. For example, of the six aggressive sectors (financials, technology, consumer discretionary, industrials, energy and materials) energy was the only sector to return below 10% in 2012. That is likely to change in 2013 –

And, to date, the Energy sector has been doing well, with a US one-month return of 5.06 that is second only to Health Care’s 5.50% (with Telecommunication Services pulling up the rear at 0.27%) (from Businessweek’s sector and industry research page – 6 Feb 2013)

(NOTE: Businessweek’s sector and industry research page shows the Top 30-Day United States Sector and the top 3 performing companies in this sector and the option to find similar information for other sectors. For the life of me though, I can find a link from the homepage).

Energy was also the sector that  that KKM Financial founder & CEO, Jeff Kilburg, predicted when he spoke on Yahoo! Finance’s interactive investing show, Breakout, on the last day of 2012. He points to the “race to debase” going on around the world and suggests the Energy Select SPDR (XLE) which he says could see a “nice boom” [this] year.

But, of course, listening to advice from the talking heads should always be viewed as simply a guide. Case in point: In the article, Sweetest Sectors for 2013, the author, Tom Aspray noted that he missed including the Energy Select SPDR (XLE) in his December update, Best Sector Bets list for 2013.