June 28, 2021
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In this video, I share about my approach to investing and some of the big changes in the market that you need to know about as well as what I look at to figure out what to invest in right now.
I also share what I see as THREE of the hottest opportunities in the market right now.
DISCLAIMER: I’m not a financial planner, and I don’t give financial advice or sell investment products. This video is for educational and entertainment purposes only.
My approach to investing is that, rather than buying investments that I think are undervalued and hoping they go up in the future, I buy investments that are already going up.
One of the things I look at to get an idea of how the U.S. stock market is doing is a price chart that represents the S&P 500 index with dividends reinvested.
The S&P 500 is a stock market index, which is like a basket of 500 of the largest stocks.
The S&P 500 recently reached new lifetime highs, which is a sign of strength.
The U.S. stock market has been leading for quite a while and now the other markets of the world have woken up and hit new lifetime highs, but as of today, the U.S. is still in the lead.
So if you wanted to keep your investing super simple, you could consider buying an index fund that tracks the S&P 500.
If investing in the overall market isn’t exciting enough for you, you can start looking for some of the strongest parts of the market.
If you imagine the investment world as a big pie, there are a bunch of different ways to slice up that pie.
One way to slice it up is by the type of stock or fund.
Each stock in the US Stock Market falls into one of 11 specific categories or sectors:
1. Communication Services
2. Consumer Discretionary
3. Consumer Staples
4. Energy
5. Financials
6. Health Care
7. Industrials
8. Materials
9. Real Estate
10. Technology
11. Utilities
So you could find a fund that tracks each specific sector and see which sector or sectors are the strongest.
If you really wanted to invest in individual stocks, you could look up which stocks are in the leading sectors and do some research to see which of those are performing best.
For the longest time, growth stocks and technology stocks have been leading the way and sometimes even screaming upward.
But recently, parts of the investment world that haven’t been doing much for years and years have woken up, finally started shooting higher, and really started to lead the market.
These are things like value stocks, which are stocks that are considered to be underpriced based on fundamental analysis of certain information like the companies’ financial statements.
Three of the parts of the market that are doing really well right now are Energy, Materials, and Financials.
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