An investor’s guide to sector momentum trading
The S&P 500 has had an incredible run in recent years, mostly thanks to tech’s stellar performance. But holding onto it now comes with risks. Valuations are high, which could mean that future returns won’t be as sweet, and a shift in the economic outlook or the market mood could trigger a bitter bear market. Plus, with tech stocks making up such a big chunk of the index, your portfolio could be a lot more vulnerable if that sector stumbles.
In times like these, it could be smart to take a more dynamic approach – one that adapts to different market conditions, doesn’t lean too much on one sector, and helps manage your risks, without letting your emotions drive you.
Thesis
- The Sector Momentum Edge is a simple, but sophisticated…
