Click here for a 30-day free trial. Buy and sell and buy and sell typically doesn't work. With so many sector mutual funds out there, you may be tempted to bet on the cycles of these industries.
Many sectors do rise and fall according to business or economic cycles.
Maybe you think you can catch the cycle of one sector, ride it up, get out at the top and then move on to another sector that's starting to take off. Alas, perfectly riding these vacillations is a perilous and costly undertaking. If you can do this eight times out of 10, there's a seven-figure job awaiting you at every fund company in the country. It's another form of market timing. To skillfully move your money from one industry into another, selling at every peak and buying at every valley, you must have an encyclopedic knowledge of how these industries work.