Metals sector: Time to be contrarian & tactical. 6 metal stocks with an upside potential of up to 42%
There are some sectors where you can buy and hold a stock and, over a period of time, it will deliver great returns. There are, however, some sectors where this approach does not work. Metal is one such sector. Reason: The sector is cyclical in nature and hence there is no option but to be tactical in investing. Now, the thing about tactical investing is that if you are able to invest in the right manner, the returns can be very good in the short term. Why? Because, when things improve in the sector, a ton of money flows into it in a short period of time. Yes, there is the risk of underperformance of capital, but then who said money is made without taking risk?
There are some sectors where you can buy and hold a stock and, over a period of time, it will deliver great returns. There are, however, some sectors where this approach does not work. Metal is one such sector. Reason: The sector is cyclical in nature and hence there is no option but to be tactical in investing. Now, the thing about tactical investing is that if you are able to invest in the right manner, the returns can be very good in the short term. Why? Because, when things improve in the sector, a ton of money flows into it in a short period of time. Yes, there is the risk of underperformance of capital, but then who said money is made without taking risk?
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