Which sectors should sell now and which sectors should buy now?
Answers
825 points
Dragonsbane answered 7 months ago …
I would sell consumer discretionary companies, hospitality providers and any company having anything to do with commercial real estate as those sectors have seen hard bounces (in equity prices) which are unwarranted by the fundamentals. ie Things are still getting worse, but the stocks continue to go up with the market.
I would buy gold companies as gold has been trading lower as the market rallies. I also like the Ag names, unfortunately the timing of those is a little more tricky.
PS - I'm a bear in case you haven't noticed. :)
731 points
thinker70 answered 7 months ago …
OIl is starting to make a comeback, as are commodities in general, copper for instance. Timing is everything, you need to position yourself BEFORE the major moves happen, in other words anticipate where the markets will be in 3-6 months.
Th temporary dip in precious metals is a GREAT BUYING opportunity as the upward trend line is still intact. There is certainly the possibility of gold and silver moving a little bit lower before resuming its upward trend, but this DIP is a GIFT you may only fully appreciate a few months or year down the road.
If you WAIT for a solid resumption of the up trend you will have MISSED most of the profits, position yourself early in market turns and as you become more experience you can use ULTRA Short or Long ETF,s to play these turning points in the market.
