Traditional investor is taught that a well-diversified portfolio includes stocks from many different at all times. In contrast, the savvy macrowave investor focuses on just a few sectors at any one time.
To the savvy macrowave investor, the traditional investor's strategy of broad "sector allocation" is merely a recipe for very mediocre returns. This is because the traditional investor is always holding, at anyone time, numerous weak sectors that are underperforming.
In contrast, the savvy macrowave investor looks for strong sectors to buy in an up market and weak sectors to short in a down market.
That means holding only a few of best-performing sectors at a time.
Moreover, the savvy macrowave investor regularly changes sectors as the stock market moves through the patterns of sector rotation …
Peter Navarro
When The Market Moves, Will You Be Ready?
Source: Options Trading Beginner
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