• »

Exploit Market Weakness to Your Benefit

Stocks are like people, and with people, as a general rule of thumb, you can really see what they are made of when they go through extreme adversity. Do they crack?

I ask myself the same questions when it comes to stocks. In a weak stock market, all sectors stand naked for the whole world to see. The flabby and out-of-shape ones have no bull market to hide their jelly rolls.

If you really want to boost your overall annual returns, you must have a strategy for exploiting market weakness to your benefit. You must develop a strategy for identifying the sectors that will lead the next new bull cycle.

Let's take a look at four easy steps that will help you identify the strongest sectors and pick the best ETFs to buy.

NEXT: Use relative strength to select a sector.