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Drones, solar and apps: It's not your father's sector rotation anymore

Drones, solar and apps: It's not your father's sector rotation anymore

Finance
Many individual investors fail to manage their equity portfolios with an awareness of "sector rotation" — ups and downs in different sectors' performance, stemming from changing economic conditions and inevitable shifts in market favor.Historically, determining which sectors were likely to do well at a given time was basically a function of the economy. Different sectors tended to perform well at different points in the economic growth cycle, from recession to expansion and then back down again, affected variously by such factors as commodity prices, the broad state of corporate earnings, interest-rate shifts and consumer confidence.Some of this wisdom may still apply, but things are much different now, especially regarding consumer sectors. As relentless technological advances change cons
Why traditional investment strategies just don’t work anymore

Why traditional investment strategies just don’t work anymore

Finance
Traditional investment strategies no longer work, and no single factor explains the failure of long-held investment tactics. Market volatility, global economic interdependence, emotional investing, inflation and a low-interest-rate environment all played a role in the demise of traditional investment strategies.Let's take a closer look at each factor individually to better understand why the old methodology comes up short in this new market reality.There's no way to sugarcoat it — market volatility is the new normal in today's investing environment. For decades millions of American investors have followed an aggressive growth strategy — a strategy that worked. For many it went like this: During those wealth accumulation years, invest heavily in equities such as blue-chip stocks. Rinse. Rep