BEST Sectors for Long Term

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Proverbs 13:22a “A good person leaves an inheritance for their children’s children.” I’m struck with awe by how time has traveled so quickly, and now, here I am a grandparent. Just a few short years ago we were swinging our kids, and playing with them. Now, our kids are grown, and doing well for themselves.

The aim of investors should be to capture most value by buying stocks where there is visible, forward earnings growth and where this growth can be bought at a reasonable price. A disciplined approach to stock-picking needs to be adopted. In the case of growth stocks investors should seek to identify shares that are ripe for a status change i.e. ones that are likely to be re-rated in the near future. Without industry-specific knowledge, initially this is best done by employing stock-screening filters.

Sustainable competitive advantage should be of interest to the investor because it helps to underpin a company’s future earnings and increase the reliability of brokers’ earnings forecasts. Management can have a big influence on the shape of an industry by being innovative particularly through the application of new technology. In certain cases companies have transformed the underlying economics of an industry. This in turn can generate higher returns, which can drive share prices higher and make you wealthier.

Today’s economy as well as previous economic eras have all centered around one primary issue – that of how to secure one’s financial future. What are the determining factors behind one person who managed their money to arrive at a comfortable retirement versus the unfortunate soul who did not? The matter boils down to the investors ability to recognize the optimum means to capitalize on their financial assets, set goals that are attainable in the long term and get into investments that will help make those long term goals a reality.

When it comes to successful trading, most traders and investors underestimate what it really takes. If you want to achieve excellent results in the long run, it will take years of proper trading education. Learn some of the secrets, and you could make a fortune.

A good way of approaching the current bear market is to identify sectors and leading players within those sectors that are benefiting from positive trends and structural growth. Companies continuing to post strong results in a downturn are often strongly product-led with sales growth driven by new product cycles as well as a structural shift in patterns of consumer spending. Investors can target this growth by carefully selecting the shares of leading players within these industries.

For the first time this year there are indications the U.S. economy has bottomed and a nascent recovery may be underway. But Europe has global economies and markets hostage to the decisions that come out of the EU summit this weekend that could gut-shoot any hopes for a recovery.

When I search online for investment tips what I usually find are terms and definitions or links to online brokerage services. Really worthless stuff if you ask me. I decided to post tips I think will be useful to individual investors who would like to manage their own portfolio.

The Occupy Wall Street movement came out of nowhere. In just 4 weeks we have a movement that has gained some real traction. Here is where I agree with them.

One question facing investors is how to achieve superior returns over the long-term. One option, which can save time and inject much-needed focus and discipline is to use stock screening and data mining tools as part of your armoury. The reason there is so much interest in stock screening is that, if implemented intelligently, the evidence suggests that it is one of the surest ways of consistently ‘beating the market’.