What does "conviction sector" mean in this sentence?
Those are our three higher conviction sector overweights that I do think have more room to run, especially financials.
This is the full quote for context:
Wadhwa: Turning back to equities, what sectors do you recommend? What sectors should we stay out of?
Lakos-Bujas: Within equities, we have been early on the reflation trade. We went overweight energy in December 2015. We went overweight materials in January 2016 and we also entered the financials trade in late 2015 which may have been a little bit too early, but so far it’s been paying off. Those are our three higher conviction sector overweights that I do think have more room to run, especially financials. The fourth one I would add into that bucket is healthcare. I like healthcare. I do see healthcare as a sector that will likely continue to print superior growth. Valuations have come down quite a lot. Valuation wise it’s attractive. Headline risk isn’t going to go away necessarily given the new administration, but I think a lot of the negativity around headline risk is already priced in.