Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Stocks

Striking While The Iron Is HOT!

by October 15, 2023
October 15, 2023

Few individual stocks are truly worthy of a long-term investment. The truth of the matter is that most stocks have solid quarters, but rarely sustain that strength and growth over years and decades. In fact, many industry groups suffer from the same problem and it’s one reason why many long-term “buy and hold” investors don’t understand why their strategy is failing. They simply don’t buy the right stocks, those that have exceptional long-term track records. Companies need long-term competitive edges, innovation, excellent leadership, and lots of luck to perform at a high level over decades and few accomplish it.

One example of an industry group that fails the test of time is apparel retailers ($DJUSRA). Yes, they’ll catch fire from time to time, but investing long-term in apparel retailers usually results in underperformance. Take one look at this long-term chart, especially the last decade, of the DJUSRA and you’ll see what I mean:

If you only look at the top panel, you’ll see what appears to be a fairly solid long-term uptrend. However, the bottom panel reflects the relative chart, apparel retail vs. the benchmark S&P 500. Throughout the entire secular bull market advance since 2013, the DJUSRA has been steadily declining vs. the S&P 500. In order to invest in this area and outperform the S&P 500, you’d better be a great individual stock picker, because the group has been a major disappointment.

This type of relative performance, or lack thereof, is the primary reason we established our portfolios at EarningsBeats.com. We only hold stocks for one quarter, and then we “re-draft” the stocks we want to own for the next 90 days. Our goal is to find stocks outperforming in the moment. By doing so, we avoid the long-term implications of investing in a group that consistently underperforms the S&P 500 like the apparel retailers.

Individual stocks within that apparel retail group, however, can still be great shorter-term investments and I’ll be featuring one of them in our Monday EB Digest newsletter. Subscription is completely FREE with no credit card required. To join, simply CLICK HERE and enter your name and email address and I’ll send you that strong apparel retailer tomorrow morning!

Happy trading!

Tom

0
FacebookTwitterGoogle +Pinterest
previous post
Big moments from the beginning of the Sam Bankman-Fried trial
next post
Everyone Suddenly Hates U.S. T-Bonds: What that Means and Why It’s Important to Stocks and Everything Else

Related Posts

Swenlin Trading Oscillators Trying To Turn Up

August 22, 2023

Tech and Semis Leading from the Dip

January 20, 2024

Ozempic Set the Stage, But Could Novo’s Newest...

March 9, 2024

Energy Sector Finally Becoming Bullish?

December 14, 2023

Inflation Data Brings Holiday Cheer as We Head...

December 23, 2023

Sector Rotation & Seasonality: What’s Driving the Market...

March 2, 2025

Rates Look Set to Rise as TLT Resumes...

March 18, 2024

This Is How I Crush The Benchmark S&P...

February 19, 2025

AAPL and TSLA Kick Off Q2 With BREAKOUTS!

July 2, 2024

Based on Relative Strength, Alphabet (GOOGL) Is An...

February 5, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • The Best Five Sectors, #26

    • Top 5 Junior Gold Mining Stocks on the TSXV in 2025

    • Stallion Uranium Enters into Technology Data Acquisition Agreement

    • Kobo Resources Launches Limited Edition Jersey to Support Village Communities Through Kobo Cup CSR Initiative

    • Australian Mines Enters Earn-in Deal with Cabral for Boa Vista Gold Project

    • Trump’s Big Beautiful Bill to Rewrite America’s Energy, Mining and Tech Future

    Categories

    • Business (1,280)
    • Investing (2,648)
    • Politics (3,699)
    • Stocks (1,704)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 moneycontrolplace.com | All Rights Reserved