Investor’s Business Daily recently explored the issue of weak market breadth and suggested a simple solution: go with what’s working. Market breadth refers to the number of stocks advancing versus declining in a given market. When market breadth is weak, it can be a sign of underlying weakness in the market.
The article suggests that investors should focus on sectors and stocks that are showing strength, rather than trying to find bargains in underperforming areas. By following the trends of what is working in the market, investors can potentially increase their chances of success.
DailyBubble agrees with this approach. In a volatile market environment, it is important for investors to be selective and strategic with their investments. Instead of trying to pick winners in every sector, focusing on areas that are showing strength can help investors navigate uncertain market conditions more effectively.
While it is always important to do thorough research and analysis before making investment decisions, following the trend of what is working in the market can be a helpful strategy for investors looking to improve their overall performance. By staying nimble and adaptable, investors can position themselves to take advantage of opportunities as they arise.