In this video, Ed Butowsky delves into the 11 sectors. The sector that you invest in plays a big role in your returns, as we show in this video.
Ed also explains the difference between tactical and strategic investing. While both deserve a place within your portfolio, it’s crucial to understand the purpose of each and how much they should be allocated. As always, one needs to consider their timeline to find their risk tolerance and expectation of return. If you would like to meet with Ed Butowsky and Chapwood Investments, reach out today!
Summary:
- Strategic investing (80% allocation) involves rebalancing and is considered an investment you hold for the long term; tactical investing (20% allocation) is more active and is typically held for a 6-12 month time period.
- There are 11 sectors, but there are different subsections within each of the 11.
- Technology is one of the current high-performing sectors, but it would be helpful for the investor to follow along with Ed to gauge which is overweight/underweight.