What Sectors of the Market Are Good?
Choosing the best sectors can be done through a simple ratio chart. We have called this relative strength analysis because what we will do is measure each sector relative to the market. Is the relationship between technology stocks and the broad market index improving or deteriorating? In other words, is the ratio going up or down?
If you utilize the various sector or industry indices available in most major stock markets around the world, you will be able to run this ratio for each country. As the world becomes more connected, watch to see when pan-continental and pan-world sector indices rise. Don’t worry about this. Someone in some brokerage or news company will put them together for you, so you will forever ...
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