Thursday, December 14, 2006

Sectors to focus on for the new year

Some people are just not comfortable following a timing system and prefer to research individual companies or sectors. They don’t like to switch in and out of the market and simply prefer a buy and hold strategy. While my research has shown timing the market is by far the best strategy to follow, if you have the time and the energy to research individual companies or sectors you can be rewarded handsomely for your efforts. Still, sometimes external events beyond the scope of your research can occur where even the top investors get burned. This includes things like accounting fraud, sudden change to the fundamental picture, or a downgrade by a brokerage firm that causes a stock to plummet. If you are one of these people who accepts the risks associated with buying individual companies I will be writing about sectors which I think have the most explosive growth potential ahead in the next year once a week here.

I of course still prefer to use my timing method. It’s proven itself to me, I don’t have to worry about corporate fraud, and most important; it’s a time saver with great returns!
Any companies mentioned should not be looked at as a recommendation to buy the company; rather it should be a starting ground for your own research.

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