Selecting the right Sector

[JackJackJack]

The recent correction - specifically the XFJ - took part of my porfolio down as much as 15%.

Although I have faith in the top 4 banks in the long run - the opportunity cost of having to wait for a 15% recovery is not doing me any favours.

Looks like the carnage is over - but I don't want to get caught next time.

Do people successfully use economic indicators ($US, interest rate rises etc) as signals to enter / exit particular sectors?

Thanks

Jack

 

[Smurf1976]

I'm a long term investor rather than a trader, but my investments are very much focused on a sector basis. First I identify the sectors, then I identify suitable companies within that sector.

 

[Bushman]

I'm a long term investor rather than a trader, but my investments are very much focused on a sector basis. First I identify the sectors, then I identify suitable companies within that sector.

Agreed - sector first, then the company (i.e. a top down approach).