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In less than two weeks, you're looking at a major shift in the markets.
But that doesn't mean your chances to make some real money will dry up – quite the opposite, actually.
In fact, the numbers are in…
And these are the three best ways to put your money to work this summer.
Three Sectors to Play Right Now
Investors may be off focusing on their vacations right now instead of the markets – but that doesn't mean you shouldn't be taking advantage of this time to make some real money. Now, one thing you can do is research your broker's summer outlook to pinpoint the best stocks to trade.
This is Charles Schwab's three- to six-month outlook, as an example:
But as I always say… why trade the needle when you can trade the proverbial haystack?
Rather than going through the stress of trying to pinpoint that one best stock to trade (and then hoping you're right), there's a much better way to do things: trading the whole sector.
Trading the sector by way of trading exchange-traded funds (ETFs) is a way to keep the risk of something unexpected, like a bad earnings report, from damaging your entire portfolio. When you're trading an ETF, you're not just putting your money down on one or two stocks, you're putting your money down on a basket of different funds. So one stock, or even more, could have a bad day at the office, so to speak, without taking down the entire fund – and your account.
Personally, I'd rather take my chances on a "bag" full of stocks than get hammered to the downside on one bad stock pick.
But you can take it a step further by trading more than one ETF, which will diversify your portfolio and spread out your risk even more.
And here are the three best ETFs by way of asset value to put your money to work this summer…
1. iShares Nasdaq Biotechnology ETF (Nasdaq: IBB)
Of the many reasons to consider trading the biotech industry, perhaps the most compelling right now is that biotech stocks have gained more than 7% this week alone – the sector's best week since Election Day, with the best still to come. In fact, biotech stocks have historically performed well in August, in part due to the annual biotechnology conference.
And IBB, the largest ETF in the sector, is already trading at its highest levels since January 2016. Here are its top five holdings:
About the Author
Tom Gentile is one of the world's foremost authorities on stock, futures and options trading.
With more than 25 years' experience trading stocks, futures, and options, Tom's style of trading systems and strategies are designed to help individual investors propel themselves past 99 percent of the trading crowd.