INTRODUCTION

What I've started to do over the past two years or so, is to study the various industries in the stock market.   I have found that while one industry is performing like gangbusters, another industry may be flat or declining.   For example, in the late 1990's, the technology stocks were returning 300% profit in a given year, and the energy stocks were doing terribly.   In the early 2000's, the technology stocks were performing poorly, and the energy stocks are going through the roof.   Well, it appears that the "big money" moves from one industry to another industry.   By studying the various industries, you may be able to catch the next big winners.

Industry Analysis
What would make one think to study industries? Well, I started studying industries because I had sector funds in my 401K.   I noticed my technology sector fund tuning down, so I wanted to move to another technology fund, but they were all turning down.   I noticed that the medical sector fund and the energy sector funds were down, and they were making a turn for the better. Perhaps they were going to see better days.   I did a little research, and decided to go with the medial funds.   I didn't catch the right boat, but here's the important note; at least I didn't miss the boat.   More importantly, I didn't stay on a sinking boat.

Did this move make me an expert?   I'm so far from being an expert!   Is trading stocks rocket science?   Not what I'm doing!   It's basic economics -- SUPPLY AND DEMAND!   Well, the technical analysis part is statistics, but it's the supply of a stock, and the demand for that stock, that causes the price to rise or fall.

More to come...


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Last updated on July 2001