Sector Rotation

Sector rotation has been proven to make good profits at the least risk if it is properly implemented. This book improves your odds in making profits than traditional schemes in sector rotation by: • Market Timing. When the market is plunging, do not buy any stock including sector ETFs and sector funds. This book provides a simple chart to detect market plunges (Chapter 4). • When and what sectors to reenter the market after market plunges (Chapter 2, 3, 4 and 9). Market timing is important since 2000 with destructive market plunges. • Besides Technical Analysis (simple charts available free from the web in Chapter 6-9), Fundamental Analysis (Chapter 13-14) should be performed for value sectors. You should spend one hour or two a month to determine with sector to rotate to or move your portfolio to cash when the market is risky (Chapter 3-5). The “Buy and hold” strategy does not perform since 1-2000. • Subscription services (Chapter 11-12). There are many. Even if you subscribe these services, you should read this book to evaluate their services. • Market timing by calendar and presidential cycle. • Many books on this topic were written by professors who may never make a buck in the stock market. • Some “best” sellers were written 10 years ago that do not have today’s basic tools such as technical analysis and bear any resemblance to today’s market, which can be manipulated by institution investors. • Most large companies today are global companies. The importance in investing foreign companies to diversify is less important than before. • When China expands, natural resource-rich countries would most likely benefit. Besides industrial sectors, we include bonds, contra ETFs, sector mutual funds, countries, commodities, etc. Today, most sectors are covered by ETFs. Hence, you do not need to buy gold coins to invest in that sector but the ETF GLD for example. Last update: 09/2015. Size: 280 pages (6*9)