Does it make more sense to buy a sector or only the top stock in that sector?

[admin]

Just curious about the differences over the very long term (40 years)

There are fees with sector ETF's.... but the diversification would mitigate the risk as well.

[admin]

This is what Schwab is currently forecasting:

[admin]

The safer route might be to just go with an ETF?

[TrueTomHarley]

You buy the sector, not just the lead stock of the sector. Anybody here in Rochester who has their Kodak shares proudly framed and hanging on the wall knows that.

The forecasts work until they don't. Some macro-change will take place and then the forecasts will alter, giving the impression they knew it all along.

Though it is conventional wisdom, periodically I hear accusations of fraud regarding ETFs. That is, they have pressured the market to sell more shares than actually exist, much as through the fractional reserve requirement, banks lend out more money than actually exists, and that there will one day be dire consequences on that account.

[admin]

@TrueTomHarley Kodak was a really good example.

I hadn't heard about the ETF shares before though. How would I research that further?

[James Thomas Rook Jr.]

Just don't invest in Michael Jackson Day Care Centers ....

[TrueTomHarley]

52 minutes ago, admin said:

I hadn't heard about the ETF shares before though. How would I research that further?

BillCara,com used to write about it some. Bill is an astute stock manager once based in Toronto with a long professional track record. He once hosted a blog, perhaps still does, which was much like this one, only financial. Brilliant qualified high-powered persons would jockey with complete novices posting comments. Here and there he used to dive into social commentary and he was ever distrustful of Big Money and how the worldwide markets had become corrupted.

I distrust ETFs and prefer individual stocks whenever I have held some. In recent years I have come to think mega corporations drive world events for the worse even more than governments, and put less $ into stocks on that account. "Fortunately" I never have/had that much to worry about.

[James Thomas Rook Jr.]

With world events escalating as they appear to be .. perhaps the next metal to invest in would be Lead.