How Do You Forecast Stock Sector Performance?
Many investors come to the stock market seeking higher returns on their investment dollars but many face the dilemma of how to forecast stock sector performance in order to invest safely. Fortunately, there are a few easy steps that, if followed correctly, will help you forecast the strength of a strong stock sector to invest safely in. Get a copy of the Sunday edition of Investor’s Business Daily. The Sunday Edition will post a list of the strongest sectors within the stock market and their accompanying Relative Strength (RS) ratings. Relative Strength is a scoring of 0 through 100 on a stock sector’s strength in comparison with the overall market. The higher the score the stronger the stock sector. You will take note of the 6 month and 12 month RS ratings for the top 10 stock sectors. Compare the 6 month RS readings to the 12 month RS readings of the list of stock sectors. Identify which stock sectors have higher 6 month RS ratings in relation to the other sectors on the list and hig
