The first rule from my criteria for choosing short term investments is that you need to find a sector this is outperforming the market. So I thought I’d have a quick look today and see what is doing the best at this moment. Of course, this is likely to change so it’s worth rechecking every week or so (which is why short term investing takes much more research time than long term) but if you happen to stumble across this blog this week then I’ve done some of the research for you already.
Here are the results comparing the rise/fall of ASX market indices to the All Ords over the past month.
As you can see there are five sector indices that are doing better than the All Ords: Energy, Materials, Health Care, Telecomms and Fin x Prop. Also all the top indicies: ASX20, 50, 100 and 200 are higher or equal to the All Ords which means that the bigger companies are doing better than the smaller ones.
From this though, the sector that really is standing out is Energy, which returned 6.3% in the past month – so obviously there are some really hot stocks within this sector that you can look at further.
So there you go – some homework. Go and have a look at the 24 or so companies listed in the S&P/ASX 200 Energy (XEJ) to see which ones have done the best over the last month. There just could be some winners inside the Australian stock market.
