Why Investors Should Focus on The Right Sector!

Key Points

• Often we have a more macro level take on the market but are not sure how to express it but this can be done by investing in the right sectors- for example say you think that biotech is headed for a breakout but don’t know which company is going to be a winner. 
• ETFs are a cheap way to gain broad exposure to specific stock market sectors, and even industries. 
• If you don’t have the time or the resources to invest in single name equities but have a strong feeling about the direction of a certain sub-segment of the market it is easy to find an ETF to capture that idea. 

Strong Sector Outlook? Gain Diversified Exposure through an ETF

Ensuring you feel confident about the stocks you have selected for your portfolio can feel even more daunting than putting your money into the market in the first place. As mentioned before, you can never truly go wrong with trusting the Mighty S&P 500 and just Let That Puppy Run until you retire. 

Yes, unless there is a nuclear showdown or we enter the worst economic depression in history, you can possibly reach retirement by just putting an appropriate portion of your savings into it annually but try and aim for monthly.  

However, for those out there with a higher risk tolerance and wanting to get a bit more active with their selections by investing into promising sectors of the economy, you could always look to develop an ETF Portfolio inclusive of having a portion invested into the S&P 500.

GenVest QuickTake

There is no better feeling when you pick a few stocks that go on monster runs and earn you far above the benchmark standard of the S&P 500 but sometimes it does not hurt to try and consistently hit singles and doubles. 

Even though GenVest believes you as an investor can actively select stocks for your portfolio as you become more experienced and knowledgeable, sometimes it is really just about being in the right sector time and time again. 

The truth is you can accomplish this through selecting a few stocks in that sector or just a specialized ETF representing the sector as a whole. Maybe there is some positive news at last regarding an industry that is struggling and you want to capitalize on it before the rest of the market does. 

Go For It! Over the long-term there is a good chance it will pay off because building wealth is similar to Rome, it did not happen in a day let alone a few months. Just be Macro-Minded for Macro-Returns!