FWB Video: Should Stock investors rotate between different industries?

 The latest video from FWB TV’s Evidence Based Investor Video blogs has been posted: Should stock investors rotate between different industries?

In the 3.5-minute video Cambridge stock market historian Elroy Dimson (pictured left) observes that  Investors (and consumers) have a tendency to be attracted to the latest “hot” technology, such as driverless cars or 3D printing.

That might be fine for purchasing cell phones and flat screen television sets but it is not necessarily the best course of action when it comes to investing choices.

Sometimes the emerging “Hot” industry can be a money loser, as occurred early in the 20th century when many auto manufacturers went bankrupt. On the other hand, the “old” staid industry of railways actually performed well for many investors.

Dimson concludes that simply rotating from one hot industry to another is a bad idea for most investors, arguing instead for diversifying both across industries as well as across various regions of the global economy.

After watching the video if you want to learn more, download the free guide, 12 Essential Ideas For Building Wealth


Leave a Reply