Success Key #1: Identify the Handful of Sectors that Are Growing Fastest.
If you want to outperform the market you have to invest in the right sectors.
Here's a study that drives home how important this is. The consulting firm Greenwich Associates tracked stock prices over 33 years. They found that an investor who bought the market averages at every bottom . and sold at every top . would have seen his $1,000 investment grow to $85,000.
But an investor who stayed invested during both bull and bear markets . but only in the top-performing industry sector . would have made $4.2 billion.
You read that right, it's $4.2 BILLION.
So how do you stay in the right sectors? All you have to do is look for those sectors that are currently showing the greatest rise in price and volume.
That's all there is to it! There are no complicated formulas . no obscure indicators . no "hidden secrets." All you do is look at the 192 different industry groups and rank them according to growth in price and volume.
Then, once you've identified the handful of sectors that are growing the fastest, you examine the underlying industry fundamentals. Those fundamentals will tell you whether the growth is for real or whether it's a fluke.
Go to Key # 2
How Richard Schmidt Finds His Stellar Stocks
