What Makes a Winner?
We are talking about a new twist on an old idea. The basic concept of a sector rotation portfolio is to divide the entire stock market into “pieces”, traditionally labeled, “sectors”. The SP500 index, as an example, is divided into twelve “sectors”, talked about incessantly, what is in favor and what is not? The sector is much like a piece of an apple-pie and “the stock market” is the pie itself.
What if you could divide the stocks that make up the stock market in the above way, but in an expanded way? And this expanded way, can cover a lot of territory. This site will describe one such way.
This site will describe “pieces” to be groups of stocks and will create 40 of these “pieces”. These 40 “sector-like” (but not “sector”) pieces will be our investment inventory to select from and it will be those “pieces” that are put into an “investment portfolio”. Just to make it clear, an “investment portfolio” is a group of individual investments put together in an organized way.
In this way, an investment portfolio of 10 “pieces” was constructed out of the inventory of 40 pieces.
