Sector Rotation: 21 Strategies

Sector Rotation: 21 Strategies

Author: Tony Pow

Publisher:

Published: 2020-05-14

Total Pages: 375

ISBN-13:

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Sector rotation has been proven to make good profits with the least risk if it is properly implemented. However, sectors are risky, less diversified and more volatile than the market. This book describes 21 strategies from the simplest sector rotation for beginners to advanced sector rotations for experts. Most other similar books have only one strategy. As of 5/2020, my annuity account (not too many choices while working for a mutual fund company) appreciates more than 4 times using sector rotation starting with the amount more than my yearly salary then. In the long run, this book improves your odds in making profits over 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. The simplest (for beginners) 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. Optionally, advance investors can include a contra ETF to time the market further. Buy the best performer from the last month of these four selected ETFs.*Some sectors perform better in different stages of a market cycle.*Many free sites describe the best sector performers such as Seeking Alpha.com and CNNfn.com.*Evaluate sectors using Technical Analysis (simple charts available free from the web) and Fundamental Analysis.*You should spend one or two hours 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 has not performed since 2000.*Subscription services of which there are many. Even if you subscribe to these services, you should read this book to evaluate their services and use this book as a second opinion. When your portfolio is over $100,000, $100 for a yearly subscription should pay for itself in the long run.*Use market timing by calendar and presidential cycle.*My recent experiences in sector trading can help to guide you. Be careful with many of the books on this topic that were written by professors who may never have made a buck in the stock market. When you see a lot of equations, run as fast as you can.*Some "best" seller books were written more than 10 years ago and do not use today's basic tools such as technical analysis and the extensive offers of so many sector ETFs. They bear little resemblance to today's market, which can be manipulated by institutional investors.*Most large companies today are global companies. The importance with investing in foreign companies or diversifying is less important than in the past.*When China expands, natural resource-rich countries would most likely benefit, and vice versa.*Most likely for luck but with good reasons, I predicted correctly that a disaster would happen in China as reported in August, 2019 in my article "Disasters in 2020". The second prediction has not happened yet, but it has more impact on our economy.The third prediction: China would not agree to pay for the damages of this pandemic and that would lead to the freezing of their debts to us (1.07T as of Dec., 2019). Eventually it could lead to a cold war or even a military war. I hope it will never happen.*Most books on sector rotation have one strategy and this book has 21 strategies. You can combine the strategies such as market timing along with last month's best-performed sector.Size: 370 pages (6*9)Initial date: 05/2020Last update: 06/2020


Sector Rotation for Future Millionaires

Sector Rotation for Future Millionaires

Author: Tony Pow

Publisher: Readersmagnet LLC

Published: 2020-12

Total Pages: 516

ISBN-13: 9781953616715

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Why you want to read this book. * As of 5/2020, I made over 4 times using sector rotation starting the amount more than my yearly salary then. * I have 21 strategies on sector rotation while most books have only one. * Andrew, a columnist on the Sector Rotation at Seeking Alpha, said, "Great stuff, Tony. It's great to meet experienced traders such as yourself. I had a browse through the book and think your method is a little more refined than mine."


Investment Philosophies

Investment Philosophies

Author: Aswath Damodaran

Publisher: John Wiley & Sons

Published: 2012-06-22

Total Pages: 615

ISBN-13: 1118235614

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The guide for investors who want a better understanding of investment strategies that have stood the test of time This thoroughly revised and updated edition of Investment Philosophies covers different investment philosophies and reveal the beliefs that underlie each one, the evidence on whether the strategies that arise from the philosophy actually produce results, and what an investor needs to bring to the table to make the philosophy work. The book covers a wealth of strategies including indexing, passive and activist value investing, growth investing, chart/technical analysis, market timing, arbitrage, and many more investment philosophies. Presents the tools needed to understand portfolio management and the variety of strategies available to achieve investment success Explores the process of creating and managing a portfolio Shows readers how to profit like successful value growth index investors Aswath Damodaran is a well-known academic and practitioner in finance who is an expert on different approaches to valuation and investment This vital resource examines various investing philosophies and provides you with helpful online resources and tools to fully investigate each investment philosophy and assess whether it is a philosophy that is appropriate for you.


Trend Following

Trend Following

Author: Michael W. Covel

Publisher: FT Press

Published: 2009

Total Pages: 467

ISBN-13: 013702018X

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Discover the investment strategy that works in any market. The one strategy that works in up and down markets, good times and bad.


Sector Rotation

Sector Rotation

Author: Tony Pow

Publisher:

Published: 2016-02-12

Total Pages: 262

ISBN-13: 9781530027576

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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)


Jesse Livermore's Methods of Trading in Stocks

Jesse Livermore's Methods of Trading in Stocks

Author: Jesse Livermore

Publisher: Colchis Books

Published:

Total Pages: 52

ISBN-13:

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Livermore started trading in securities when he was fourteen years old. He made his first thousand when a mere boy. He has practiced every device known to the active speculator, studied every speculative theory, and dealt in about every active security listed on the New York Stock Exchange. He has piled up gigantic fortunes from his commitments, lost them, digested, started all over again—and piled up new fortunes. He has changed his market position in the twinkling of an eye—sold out thousands of shares of long stock, and gone short of thousands of shares more on a decision which required reading only the one word, “but,” in a lengthy ticker statement. If his later experiences were not enough to catch the public fancy, Livermore would have won it by his greatest feat of all: beating the bucket shops. Beating the cheaters, in fact, was Livermore’s pet plan after things had gone against him and he was forced to start anew on a small-lot basis.


One Up On Wall Street

One Up On Wall Street

Author: Peter Lynch

Publisher: Simon and Schuster

Published: 2000-04-03

Total Pages: 308

ISBN-13: 0743200403

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THE NATIONAL BESTSELLING BOOK THAT EVERY INVESTOR SHOULD OWN Peter Lynch is America's number-one money manager. His mantra: Average investors can become experts in their own field and can pick winning stocks as effectively as Wall Street professionals by doing just a little research. Now, in a new introduction written specifically for this edition of One Up on Wall Street, Lynch gives his take on the incredible rise of Internet stocks, as well as a list of twenty winning companies of high-tech '90s. That many of these winners are low-tech supports his thesis that amateur investors can continue to reap exceptional rewards from mundane, easy-to-understand companies they encounter in their daily lives. Investment opportunities abound for the layperson, Lynch says. By simply observing business developments and taking notice of your immediate world -- from the mall to the workplace -- you can discover potentially successful companies before professional analysts do. This jump on the experts is what produces "tenbaggers," the stocks that appreciate tenfold or more and turn an average stock portfolio into a star performer. The former star manager of Fidelity's multibillion-dollar Magellan Fund, Lynch reveals how he achieved his spectacular record. Writing with John Rothchild, Lynch offers easy-to-follow directions for sorting out the long shots from the no shots by reviewing a company's financial statements and by identifying which numbers really count. He explains how to stalk tenbaggers and lays out the guidelines for investing in cyclical, turnaround, and fast-growing companies. Lynch promises that if you ignore the ups and downs of the market and the endless speculation about interest rates, in the long term (anywhere from five to fifteen years) your portfolio will reward you. This advice has proved to be timeless and has made One Up on Wall Street a number-one bestseller. And now this classic is as valuable in the new millennium as ever.


Behavioural Investing

Behavioural Investing

Author: James Montier

Publisher: John Wiley & Sons

Published: 2009-10-09

Total Pages: 740

ISBN-13: 0470687797

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Behavioural investing seeks to bridge the gap between psychology and investing. All too many investors are unaware of the mental pitfalls that await them. Even once we are aware of our biases, we must recognise that knowledge does not equal behaviour. The solution lies is designing and adopting an investment process that is at least partially robust to behavioural decision-making errors. Behavioural Investing: A Practitioner’s Guide to Applying Behavioural Finance explores the biases we face, the way in which they show up in the investment process, and urges readers to adopt an empirically based sceptical approach to investing. This book is unique in combining insights from the field of applied psychology with a through understanding of the investment problem. The content is practitioner focused throughout and will be essential reading for any investment professional looking to improve their investing behaviour to maximise returns. Key features include: The only book to cover the applications of behavioural finance An executive summary for every chapter with key points highlighted at the chapter start Information on the key behavioural biases of professional investors, including The seven sins of fund management, Investment myth busting, and The Tao of investing Practical examples showing how using a psychologically inspired model can improve on standard, common practice valuation tools Written by an internationally renowned expert in the field of behavioural finance