One of the questions that I am most often asked at my seminars and live events is: What’s working now? Of course, the answer to this question changes frequently and in some cases almost daily. I know this answer isn’t quite what my questioners are looking for, so in an effort to properly answer this oft-asked question I’m going to tell you briefly about three areas where I think there is a lot more room to grow.
1) Oil and Energy
It may seem like a contradiction, considering oil prices and energy stocks have slid precipitously in recent weeks. But I think that the risk premiums in the energy space now have largely evaporated. This situation means that astute investors can get beaten-down energy investments at very attractive prices.
Whenever you have geopolitical turmoil, economic slowing and general market uncertainty, you have a recipe for higher gold prices. Right now, the price of gold and gold mining stocks are heading higher, coming off of their mid-January lows. This recent trend toward higher gold prices is one I think we’ll continue to see in the near future.
3) Large Cap Dominance
Large cap stocks, as measured by the Dow and S&P 500, are trading near 52-week highs. While I suspect this trend will come to a halt sometime in 2007, we could be in store for a bit more upside in these large capitalization stocks in the short term. If you currently are holding these stocks, you’ve likely done well. Just remember to protect yourself with a stop-loss so that you don’t see your hard-fought gains evaporate into the ether.
Want to know how to profit by answering the question of what’s working now? In my ETF Trader service, that’s exactly what we aim to do. We just recently added the aforementioned energy and gold to the ETF Trader portfolio, and we constantly are rotating in and out of various market sectors in an effort to maximize short-term gains.
This service is not for everyone, since our goal of grasping short-term profits isn’t designed for all investors. However, those who have some money to invest for quick gains will find this service to their liking.
I invite you to investigate my ETF Trader service and see if it’s the right fit for your portfolio.