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Back in my banking days, I had a general rule of not investing in companies within the financial sector. My reasons were twofold:
1) A simple S&P 500 index fund has plenty of financial exposure already, and
2) It seemed a bit risky to put my future income (retirement investments) in the same basket as my current income (employment).

Years have passed, and I am now in the healthcare finance biz. I've always expected, as many prognosticators do, that healthcare equipment manufacturers, pharmaceuticals, insurers, hospital management companies, etc. would benefit significantly over the next 20-30 years as the Baby Boomers begin to need more medical care. Being a mere 30 years old, I have plenty of time to take advantage of this, if it be true.

If I'm wrong, though, I could get downsized and watch my portfolio tank at the same time. What are your thoughts on investing in the sector in which you work(ed)?

If you know the field, you should invest there (overweight)
Invest, but no more or less than other sectors (normal weight)
A little exposure is good, but don't stake your whole future on it (underweight)
Stay out; you could lose your paycheck and your portfolio at the same time (avoid)
I have an industry sector in my pants

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