An Uncertain Bull Market
Ă‚Â This is an unbelievably good market one may say, as of May 16, the S&P 500 is up 3.3% for the month and over 15.7% for the year. Just look at the numbers, the S&P 500 had six consecutive positive months and only four negative months for the past nineteen months going back to October 2011. If we continue at this rate the S&P 500 might be touching 2,000 mark …
Beat the Market With Sector Rotation
Everyone wants to outpace the market, usually defined as theĂ‚Â Standard & Poor’s 500 index. While the stock market never guarantees you aĂ‚Â sure-fire win, there’s a clever approach that has triumphed in the last dozenĂ‚Â years. It involves rotating into the best-performing sectors annually. Last month, I wrote about this interesting investment strategy, which a pioneer of sector investing, Standard & Poor’s Sam Stovall, calls: “There’s Always a Bull …
Not Time to Panic
After a beautiful first quarter, which brought the S&P 500 a wonderful 12% return, things turned drastically downward. So far this month, the S&P 500 is down 2.82%. What is going on? Are we in for continued downward spiral or is this a correction? If you look at the first-quarter numbers, they all reflect rebound in economy and show growth. The top performing sectors showed continued stabilization of the financial …
There’s Always a Bull Market Somewhere
“Taking a buy-and-hold approach with sectors is like buying a Ferrari and then driving behind a school bus the rest of your life,” so begins Chapter 5 of Sam Stovall’s book, The Seven Rules of Wall Street. Without a doubt, if I had a Ferrari I would not want to drive behind a school bus ever. So, clearly I was intrigued by this. Here’s a bit of background about Sam …
A Case Study in Individual Stock Risk
As investors, we don’t like surprises. Even if there is a 50% chance of getting a good surprise from our investment, we don’t like the other 50%. We actually hate it, and there is more pain on the downside than happiness on the upside, and we remember pain longer. That’s just human nature. So imagine how Goldman Sachs (GS) investors felt last week, when on March 14 the company’s value …
A Dangerous Game
There’s no doubt about it: Energy is on the rise. The space, as measured by the Energy Select Sector SPDR (XLE), is this month’s best-performing sector. The fund has gained 4.2% as of Feb. 15, outperforming the S&P 500 by 1.8%. Sector ETFs, Month-to-Date Performance Source: The Rockledge Group That’s quite a difference from last month’s performance, when it was close to the bottom of the pile, underperforming S&P 500 …
A Study in Sector Allocation
We are having a very good time now. The S&P 500 is up 4.4% in January and 2.9% going into Wednesday, for a cumulative return of 7.4% year to date. So, yes, it is turning out to be a very good run. What a difference from the virtually zero gain on the S&P 500 for all of last year. Last year was nerve-racking for sure, with so many macro and …
Market Vs. Economic Cycles And Sector Rotation – Seeking Alpha
Market Vs. Economic Cycles And Sector Rotation – Seeking Alpha. By Lance Roberts “To Everything (Turn, Turn, Turn) There Is A Season (Turn, Turn, Turn) And A Time To Every Purpose, Under HeavenA Time To Be Born, A Time To Die A Time To Plan, A Time To Reap A Time To Kill, A Time To Heal A Time To Laugh, A Time To Weap” Those lyrics to Turn! …
Sector ETFs Applied to Rotation Strategies
Sector ETFs Applied to Rotation Strategies Written on 09/15/2011 All investors have one thing in common, and that is their end goal. Everyone wants to make money, and preferrably at a rate that will mitigate the effects of inflation and provide for a comfortable retirement. That means you need to be implementing an investment strategy that outpeforms the S&P 500. Well, in all fairness this may not have always …