Finding the Right Stocks and Sectors
A top-down investment strategy is based on determining the state of the overall economy as well as the strength of its various sectors, and then picking the strongest stocks within those sectors to maximize your returns.
Even if the overall economy isn’t performing particularly well, there will be sectors and companies that buck the trend.
Investors can attempt to earn better-than-market returns by pinpointing the hottest sectors leading the market higher and then identifying the best stocks within those sectors.
Key Takeaways
- In an economic uptrend, pinpoint the hottest sectors leading the market higher and identify the best stocks within those sectors.
- In an economic downtrend, look for the sectors that are bucking the trend…
