Beat the Market With Sector Rotation

Everyone wants to outpace the market, usually defined as the  Standard & Poor’s 500 index. While the stock market never guarantees you a  sure-fire win, there’s a clever approach that has triumphed in the last dozen  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 …

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Category: Sector Rotation, SPY, XLB, XLE, XLF, XLI, XLK, XLP, XLU, XLV, XLY

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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 …

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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 …

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Category: Sector Rotation, XLB, XLE, XLF, XLI, XLK, XLP, XLU, XLV, XLY

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Curb Your Worries

The market has dropped like a rock since Feb. 29, with the S&P 500 falling 1.42%, and it feels as though there is more room to go. Should we panic? Is this a beginning of the new “risk-off” period? The beginning of the year was stellar — the “January effect” rolled into some kind of February effect, and the S&P 500 gained an incredible 8.59% for both months. But it …

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Category: XLB, XLE, XLF, XLI, XLK, XLP, XLU, XLV, XLY

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