Stop Focusing On Stocks…Think Sectors

One of the main reasons the average investor loses money in the stock market is from focusing on stocks.

Huh?

That’s right.

Everyone thinks they’ll get rich by owning that “One Stock” that’ll make them a millionaire.

Trust me when I say, “It ain’t gonna happen.”

Why?

Focusing on stocks is a sucker’s game.

And it’s how the boyz in the “Club” make a fortune off of you.

But this begs the question, “What do they do?”

Who’s Focusing on Stocks?

Instead of focusing on stocks the Boyz focus on sectors?

Let me explain.

A sector is a group of companies whose focus is on the same industry.

Example:  Healthcare, Finance, Technology, Utilities, Consumer Staples, Energy, etc.

One major key to making money is understanding how sectors shift in AND out of favor.

So, by moving from one sector to another – aka “Sector Rotation” – you increase your odds of financial gains.

“…In Plain English” sector rotation is simply the flow of money from one sector to another.

Here’s three key reasons why most people get it wrong.

1. Most investors believe you must have positions in all sectors at all time…Wrong!
2. They don’t want to take profits and shift to another sector…Wrong, again.
3. And they become emotionally attached to a stock or sector…Wrong to the third power.

Cue up the quote from Bernard Baruch: * “I made my money by selling too soon.”

(* Baruch was one of the most famous traders of all time and is considered to be the pioneer of “Sector Rotation.”The

Key Point:  Regardless of market conditions (rising or falling) there’s always a sector that’s undervalued and ripe for the picking.

So, do you want to learn how to make money by “selling too soon?”

Learn which sectors we like in our August edition of “…In Plain English” (HERE).

And share this with a friend…They’ll thank YOU later.

And tell them We’re Not Just About Finance.

https://www.financialsmatter.com/connecting-the-dots/

***************************

When You Realize How Much You Learn by Reading Financial$Matter Newsletter