If you diversify, you are bound to perform like an index. So, do not waste your time (and money) and just buy a stock index like SPY.
If you want to outperform the market (on a risk adjusted basis), you have to focus on specific investment ideas. I use three steps.
1. Market timing indicators over the intermediate term (6 months).
2. Sector selection based on economic conditions (yield curve, real interest rates, strength of the economy, position of the business cycle, and financial risk).
3. Invest in the strongest stocks of a given sector.
More, much more on https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
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