Sector Rotation: 3rd Edition

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 2). Basically it is a sector rotation between SPY (an ETF that simulates the market) and cash (or an ETF of short-term bonds). • The next rotation strategy involves four ETFs in a rising market described in Chapter 5. Optionally, you can include a contra ETF to time the market. Buy the best performer of last month of the selected ETFs. • Some sectors perform better in different stages of a market cycle as described in Chapter 41 and 45. • Many free sites describe the best sector performers such as Seeking Alpha and CNNfn. • Evaluate sector using Technical Analysis (simple charts available free from the web described in Chapter 6-9) and Fundamental Analysis (Section III). Use the same tools to evaluate individual stocks within a performing sector – top-down investing. • You should spend one hour or two a month to determine which sector to rotate to or move your portfolio to cash when the market is risky. The “Buy and hold” strategy does not perform since 2000. • Subscription services (Chapter 11-12). There are many. Even if you subscribe these services, you should read this book to evaluate their services. When your portfolio is over $100,000, $100 for a yearly subscription should pay itself in the long run. • Market timing by calendar and presidential cycle. • My recent experiences in sector trading (Chapter 19, 30 33, and 46). • Be careful on 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 (Chapter 27 and 28). • Most similar books have one strategy and this book has 11 strategies. You can combine the strategies such as market timing with last month’s best-performed sector. Last Update: 06/2016. Size: 260 pages (6*9)