Since I won't be touching the money in my retirement accounts for decades into the future (I'm 24 years old), does it make sense to just invest the money in volatile sectors of the market, but that have outperformed the average annual return of an "all stocks all sectors" kind of portfolio over the long term (10+ years)?
Assuming I really don't care about a 25% loss in a given year here and there, as long as the performance of the portfolio over the long term is above average, does this strategy make sense in a purely mathematical, emotionless sense?
For example, I'm considering buying funds invested in the Biotech, Software/IT, Retailing, Pharmaceuticals, and Chemicals sectors of the market, which have outperformed the typical 7% average annual return of a typical "all stocks all sectors" portfolio.
Note: the highlighted column is the average annual return of each fund for the last 10 years.
Of course, I can be a little active every now and then about this; that is, if I hear that congress is about to pass price controls on drugs, then it'd be cautious to pull out of biotech and pharmaceuticals to see what the consequences are over the long term.
Is this strategy too risky and something only a foolish person would try?