This is a very important question! Because trends really do tend to continue. Do you want to invest in trends that are going backwards or forwards?
I see three ways to investigate this:
1) Sectors / Industries
2) Charlie Morris Quadrants from Fleet Street Letter & Money Week Mag
3) Stockranks
1) I have done a lot of work with Sectors & industries over different time periods. Obviously there are different ways of looking at this. Which stage of the economic cycle are we currently in? Which stage of the economic cycle comes next? I find it impossible to see any clear recent share price trends that correlate with this approach over any time period.
2) Charlie Morris Quadrants appear to be very well researched & authentic. But I can't find a way to validate or invalidate them to recent market trends.
3) I have also done a lot of work on which Stockranks have done best recently. At least this way my results give a reasonably clear result. Stockopedia Value & Growth ranks have been the equal best performers over the last three months. This section of the site could really do with some improvement to support this approach going forward. Do you agree?
So what I really want to know is which current stock market themes do you consider to be the most important? And what evidence do you have to show that recent market performance supports your idea?
I would love to hear you ideas on the best themes. If you don't have any clear idea on the best trend to follow, do you have any ideas on the best way to conduct further research about themes & recent share price performance?
