What is a good way to utilize big data to find investment opportunities or next rising sectors?
As a professional I have expensive momentum programs that scan over thousands of global stocks and engineered proprietary algorithms to find these Performance stocks. However, there are simple ways a retail customer can find those hidden gems of stocks or fixed income investments.
Stocks (When Stocks are Moving Up)
The US stock market has to be moving up for this answer to work or you will lose money. In addition, you are missing out on fixed income (bond) ideas, global stocks, commodities and inverse counter market ideas. Currently, many global stocks are out performing the US S&P 500 October 16, 2013.
The best website to use for some simple stock ideas in the country of the US for the retail customer, which are free, is to go to Morningstar.
7 Step Cantu Method for Finding Stock Ideas
Step 1. Go to Morningstar dot com
Step 2. Click the tab called “stocks”
Step 3. Scroll down on your left side to “Performance”
Step 4. Click “Sectors”
Step 5. Click the top heading to arrange the timeframe, like “5-day” or “1Month”
Step 6. On the left side click the top sector you prefer, like “Energy” or “Utilities”
Step 7. Amazing, there are your list of stocks and “pick one and click it.”
Morningstar will provide you with a free basic information page. Morningstar does not have information on every stock, but it does cover quite a few and is an easy website for the retail customer to navigate.
GTAA Sector Rotation
When the stock market is moving down you must sector rotate out of stocks to bonds, precious metals, inverse counter markets and other global investments.
We call this “GTAA Sector Rotation” and is the best way to manager money today.
Fixed Income (When Bonds are Moving Up)
Use Fixed Income ETFs and ETFdb. Use the ETF screener and scan for bonds, fixed income investments.
Stocks and investments have risk of loss which the investor must be willing to bear. Keep in mind, the country of the US stock market must be going up or you will lose money.
ETFs have risk of loss which the investor must be willing to bear. This is answered for educational reasons and not intended for any recommendations.
Joe Cantu is a regular commentator for Quora on the following topics: Stock Market, Economics, Defined Benefit Pension Plans, Asset Management, Mutual Funds, Investing, and Exchange Traded Funds.