Switching through the Sectors


Objective:
The objective of the strategy is to identify and capitalize in the upward price movements of individual industrial sectors (like Health Care, Energy, or Technology). It also attempts to compensate for market crashes, by investing in "safe harbor" and "short" instruments during market down turns.
Minimum investment:
The strategy generates a number of trades so a minimum initial investment of $3,000-$5,000 is required in order to generate adequate returns to make this a viable strategy. The strategy will work with either a lump sum amount, or ongoing contributions.
Recommended Holdings

Invest in the holdings with the top 3  highest score as long as it is greater than zero. Re-balance once per month.

Dec 2016 update- strategy retirement

posted Jan 1, 2017, 5:45 PM by sms investing

Sector Switching Performance
After 3 years of running the "Adding Value" strategy, it is significantly behind compared to a "Buy and Hold" of the S&P 500. Given the disappointing returns, I am retiring this strategy,

Dec 15th, 2016

posted Dec 15, 2016, 3:01 PM by sms investing

  • Buy XLE-energy
  • Keep XLI - Industrials
  • Keep XLF - Financials
  • Sell XLK- Technology
  • Nov 15th

    posted Nov 14, 2016, 6:42 PM by sms investing

    Our Switching through the Sectors strategy has updates this month

    Sell XLE-energy
    Sell XLV- health care
    Buy XLI - Industrials
    Buy XLF - Finanicals

    Oct 15 - 2016

    posted Oct 16, 2016, 5:59 PM by sms investing

    Our "Switching through the Sectors" strategy has updates this month!.
    • Sell XLF (and also XLRE)
    • Buy XLE (Energy)
    • Keep XLV- Health Care
    • Keep XLK-Technology

    XLF restructuring

    posted Sep 19, 2016, 9:24 AM by sms investing

    ou may have noticed a drop in the price of XLF. However don't let this alarm you. It is currently going through a restructuring and you will receive a dividend from the fund for the difference.

    ishares put out the following statement:
    As of Sept. 16--the effective date for the changes to the Financial Select Sector Index--XLF's real estate holdings were transferred on an in-kind basis to XLRE, thus creating new shares of XLRE. In an effort to mitigate the cost of implementation, SSgA waived XLRE's fee until Sept. 16. This has resulted in the creation of $3 billion worth of new XLRE shares; these will be held by XLF until they are ultimately paid out to XLF shareholders as a special dividend on Sept. 22. According to SSgA, the estimated distribution for the special dividend will be 0.14 shares of XLRE or approximately $4.47 per share of XLF [based on Sept 9th prices]

    Sept 15 2016

    posted Sep 16, 2016, 6:48 AM by sms investing

    Current holdings should be:

    XLK- Technology
    XLF- Financials
    XLV-Health care

    July 15th 2016

    posted Jul 14, 2016, 7:51 PM by sms investing

    No changes this month.

    May 16th, 2016

    posted May 16, 2016, 8:47 AM by sms investing

    This strategy is selling technology (XLK), and buying consumer staples (XLP)

    4-15-2016

    posted Apr 15, 2016, 8:45 AM by sms investing

    We have updates this month, selling XLP (Consumer Staples) and buying Technology (XLK)

    4-1-2016

    posted Apr 1, 2016, 12:53 PM by sms investing


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