Despite rallying markets, affluent investors are still pessimistic about stocks. So what should advisors tell clients who are frightened of volatility and clinging to a hefty cash cushion?

Sam Stovall, chief investment strategist at Standard & Poor's suggests the following for boosting risk-adjusted returns in U.S. large cap stocks: Pick three sectors that represent totally different phases of the economic cycle, buy them in equal thirds, and rebalance annually. But not just any three sectors. Stovall recommends technology, energy and consumer staples.

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