"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."
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.
What a difference time makes! A year ago, lower home values, plunging stock portfolios and massive layoffs prompted the wealthy to restrain their spending on luxury goods. Sales tumbled at luxury retail stores and double-digit declines in same-store-sales became the rule rather than an exception. As confidence in the economy and financial markets has improved, luxury spending is… 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 »
Yesterday’s natural gas inventory report from the U. S. Energy Department’s Energy Information Administration (EIA) provided traders and investors a grim reminder on the over-supply of natural gas. The EIA reported that natural gas stored in the lower 48 states amounted to nearly 3.6 trillion cubic feet. This tally is the highest on record on a seasonally adjusted… Read More »
The housing market is showing signs of stabilization. The free fall in home prices appears to have ended. Even though foreclosures are on the rise, strong increases in sales are enabling home prices to stage a modest rebound. Home prices as measured by the S&P/Case-Shiller index advanced 1.4% in June. This marks the second straight monthly gain for… Read More »
The housing market is sending mixed signals. Home sales are rising. Foreclosures are increasing too. Is the worst really over for housing? Rising Sales of New and Existing Homes Sales of existing and new homes are increasing. In July, total sales of new and existing homes rose to a 5.673 million annual rate, the highest since November 2007.… Read More »
Investors often lump commodities together and run the risk of making improper investment choices. While some commodities can be hot, others may not. The supply and demand factors affecting commodity prices are usually specific to a commodity. Take the case of gold and natural gas this year. The price of gold has been relatively strong. The surge in… Read More »
Industry wide ad revenue in the larger print segment declined 30% to $6.2 billion in the second quarter. Even the smaller online-only segment has not been immune to the recession. According to the NAA, online-only ad revenue fell 16% to about $650 million. Against the backdrop of shrinking demand for products and services, employers grew reluctant to increasing… Read More »
July has been a good month for biotech investors. Share prices in the biotech sector as measured by the NYSE Biotechnology Index are up 24% compared to the 6.6% gain for the S&P 500. Earlier in the month, Amgen (AMGN) reported better-than-expected results from a trial of its experimental bone-protecting drug denosumab in patients with advanced breast cancer.… Read More »
The AlphaProfit No-Load, No-Transaction-Fee (NL-NTF) growth model portfolio is up 175% since 2009. In comparison, the model portfolio’s U. S. & foreign stock combination benchmark is up 135%. The NL-NTF model portfolio will be reconstituted with new recommendations of best-of-breed mutual funds on Wednesday, August 21.
Learn more about AlphaProfit’s Free and Premium Service investment newsletters.