"In the investing blog, I seek to help you take sound investment decisions free from emotion by sharing my
objective insights on markets, sectors, and companies."
Sam Subramanian PhD, MBA, Editor, AlphaProfit MoneyMatters
Must-read Articles on Sector Investing
High-potential diversified portfolios can be constructed by dividing assets among a group of sector funds. This approach gives the investor flexibility to over-weight or under-weight certain sectors versus broadly diversified indexes. 'Sector funds are too risky.' 'I doubled my money with Fidelity Select Technology in 12 months!' 'Avoid sector funds.' If all of this sounds confusing, you are not alone.
If you are looking to earn great returns from the stock market sector mutual funds are right up your alley. Sophisticated investors recognize the potential sector mutual funds offer and know how to make such funds work for them. You can consistently beat the market by investing in the right sector mutual fund at the right time. In fact, you can make money even in bear markets.
Sector ETFs are among the most potent investment vehicles that allow individual investors to exploit advantages previously available only to large institutions. You can beat the market by investing in the right sector ETF at the right time. In fact, you can actually make money even when the overall market is tanking. However all too often, investors use sector ETFs inappropriately and get their fingers burnt.
Commodity exchange traded funds are hot. Assets in SPDR Gold Shares (GLD) have surged to nearly $60 billion to make it the second largest ETF behind the SPDR S&P 500 ETF (SPY). The threat of inflation and the ease of access of commodity ETFs are some factors that account for the growing popularity of commodity exchange traded funds.… Read More »
Fidelity Investments is now offering investors a way to invest in the alternative energy group by extending the investment objective of a Fidelity Select fund. Sensing stronger demand from investors to invest in alternative energy ideas following BP’s (BP) oil spill in the Gulf of Mexico and Massey Energy’s (MEE) coal mine disaster in West Virginia, Fidelity has… Read More »
The energy industry is very much in the news after Deepwater Horizon, a drilling unit owned by Transocean (RIG) exploded on April 20, 2010. Damage from the resulting oil spill, the largest in U.S. offshore drilling, could exceed $50 billion. The U. S. Government has named BP (BP) as the responsible party in the incident. Shares of both… Read More »
The financial crisis took a toll on 2009 US auto sales pushing them below 1982 levels. At the depth of the recession, auto sales slumped to a seasonally adjusted annual rate of just 9.2 million a year, nearly 44% lower than the pre-recession level of nearly 16.5 million units in 2007. While cash-for-clunkers provided the initial boost late… Read More »
High-potential diversified portfolios can be constructed by dividing assets among a group of sector funds. This approach gives the investor flexibility to over-weight or under-weight certain sectors versus broadly diversified indexes. Sector funds are too risky.’ ‘I doubled my money with Fidelity Select Technology in 12 months!’ ‘Avoid sector funds.’ If all of this sounds confusing, you are… Read More »
Fidelity Investments offers sector funds under the Fidelity Select fund umbrella. We prefer these Fidelity sector funds for the following reasons: Fidelity Sector Fund Choices After pioneering the sector investing concept in 1981, Fidelity Investments has expanded the Fidelity Select funds to span 7 sector groups. Each sector group has one broad sector fund and several industry-specific funds.… Read More »
Sector investing harnesses the potential of sector funds through sector rotation to create wealth. Sector funds focus their equity investments within a specific sector or industry of the economy. Stock prices of companies within a sector or industry move together due to causal factors. Examples of such factors include introduction of new technologies or products, changes in consumer… Read More »
Exchange-traded funds (ETFs) are growing in popularity. Bucking difficult market conditions, assets invested in ETFs have increased from $569 billion in January 2008 to $693 billion in September 2009. The flexibility provided by Select Sector SPDR ETFs in creating low-cost portfolios with customized asset allocations have enabled them to carve out a niche in the ETF world. The… Read More »
Stocks have recently made new 2009 highs. Volatility has declined. As confidence in the economy and financial markets improves, initial public offerings are increasing. The pace of corporate transactions is picking up as well. A surging stock market and rising capital market activity are often good for firms in the investment management business. Yet, large financial services firms… Read More »
Leading information technology consulting firms have received takeover offers. Affiliated Computer Services (ACS) has received a $6.7 billion offer from Xerox (XRX). Perot Systems (PER) has accepted a $3.9 billion offer from Dell (DELL). These transactions unveil a major trend in the technology sector where hardware companies are vying to acquire IT consulting and services firms. So, why… Read More »