August 28, 1995
Stock markets continue to be dominated by two factors: 1) investment house pro trading activity, and 2) the continuing emphasis on asset allocation by investment institutions, the latter creating industry group rotation. The nimble individual investor can always take advantage of these situations. Industry group rotation comes in cycles. Some are short, such as hi-tech. Others are longer, such as consumer goods, retail merchandising, gold, oil & gas sectors. Bargains can be had when a group is not in demand. One thing certain then is that you have little trouble selling your stock once that sector is back in demand. Anticipating pro-trading activity is somewhat more difficult since it comes at a time when there are corporate take-overs, initial public offerings (IPO's) or sometimes as a result of volatility in interest rates or in currencies.