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Friday, May 14, 2010

Investing 202: Market Sectors

Choosing a distinct sector to invest in is often a difficult proposition, on the surface the most attention is given to tech stocks, pharmaceuticals and banking. Diving a little deeper there are so many other market sectors that offer more sustainable and less problematic stocks. The problem lies within the hoopla behind the afore mentioned three, they are comprised of stocks that overnight can double or triple based upon investor perception upon future earnings, although of course they can also be reduced by the same magnitude.
On the converse are other sectors which offer some stability and are driven by real numbers not a perceived future value that may or may not come to fruition based upon the acceptance of a new lupus combating drug or advanced OS.
In essence look beyond the ubiquitous news about this or that tech stock that may be the next Google, chances are they aren't! Volatile stocks often fall even faster than they rise, when investing for the future invest in something with a little risk, but with a solid foundation.

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