What Makes a Winner?
IT IS POSSIBLE TO beat the SP500. This blog is about SECTOR INVESTING. The method is simple, on purpose. Doing it is easy. AND the blog is FREE.
The website is designed for the 14- to 20-year-old “budding investor”, as an introduction to “the art of portfolio design”. But it can be of interest to investors of any age. The portfolio in this blog is “a sector rotation” portfolio.
The basic concept of a sector rotation portfolio is to divide ALL investments into “sectors”. The sector is much like a slice of an apple pie. The sectors are traded as ETF(s), stock exchange tradeable funds, each of which is an “umbrella investment” of similar individual stocks. All that is left to do is to then invest in the ones with the best performance. In this site, 32 “sectors” were created. The sectors are sorted by relative strength, ranked by price movement relative to each other, to rank the sectors from best performing to worst performing. The top 8 sectors, in equal dollar value positions, is the initial investment portfolio.
In sector investing, “the trend is your friend”. It is no more complicated than that. Suggested reading. “Antifragile” by Nasim Taleb. “Thinking Fast and Slow” by Daniel Kahneman.
