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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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 …

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Category: Sector Rotation, SPY, XLF

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