Welcome to my review of an investment advisory service by Chris Rowe called Sector Focus.
Chris Rowe of True Market Insiders believes that his “Sector Hunter” trading system can improve your chances of bagging returns by pointing you to the best sectors while helping you to avoid the “bad apples.”
He does not trust broad market indices as a means of analyzing investments and opts for a sector-focus approach.
Therefore, in this article, I will be walking you through how Chris picks his trades as well as what you can expect if you subscribe to the Sector Focus advisory service. Keep reading to learn more.
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What is Sector Focus?
Sector Focus is an investment newsletter that is published each month by Chris Rowe via an independent publishing firm called True Market Insiders.
Rowe’s investment strategy is based on a trading system called Sector Hunter, which uses an algorithm to detect institutional buying and selling. Based on his findings, he publishes his sector and general market analysis every second Monday of each month.
His goal is to find strong sectors to improve the chances of earning profits from his trades. Consequently, he avoids weak sectors whose chances of generating losses are higher.
In his general market analysis, he talks about how different financial markets affect each other.
Why Chris Rowe focuses on sectors rather than the broad market
The Sector Focus Service, as the name suggests, concentrates on sectors and subsectors rather than the broad market. Chris believes that this is a more accurate way to analyze the market and find the best investment opportunities.
He argues that most major financial networks and sites only focus on broad indexes like the S&P 500 and Dow Jones Industrial Average (DJIA or the Dow) because it makes their work easier.
He says:
“Do you monitor all the financial networks and financial sites? Even these media know that most investors don’t have the attention span for deep, thorough analysis. So they keep it simple.”
He reasons that they do that to keep the attention spans of their readers and audiences rather than correctly analyze the market. Therefore, they end up producing inaccurate depictions of how things are.
He distrusts the Dow because he believes it is disproportionately price-weighted since it only has 30 stocks.
He thinks that monitoring the S&P 500 is slightly better than the Dow Jones Industrial Average although it is still not the best way to track the market because:
“The S&P 500 is a tiny bit clearer picture of the market. But again, it’s flawed. It’s based on 500 stocks, not 30. But the biggest 50 stocks make up half the weight — and contribute to half the index’s movement. Tracking the S&P 500 doesn’t give you a fair picture of the market either.”
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His solution is to focus on specific sectors because it enables him and his followers to invest in the right sectors. With his approach, they know how each is performing without distorting their analysis with inadequate or irrelevant data.
To reinforce this analogy, he quotes a study conducted by Dorsey Wright and Associates that showed that the average difference between the best and worst-performing sectors is usually quite significant.
This means that sectors behave differently and you will be rewarded if you concentrate your investments on the better-performing ones.
The study goes a step further and addresses sub-sectors. It demonstrates that with sub-sectors, the differences are even greater between the winners and losers.
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How does Sector Focus work?
Going by the principle that you should invest in winning sectors to increase the probability of making a profit, Chris Rowe starts by going for major sectors:
“I focus on opportunities by going way beyond the broad market averages – I identify the ‘Major Sectors’ with the greatest strength relative to the overall market (sectors that go up by more and down by less than the stock market as a whole).”
Then within the winning sectors, he separates the sub-sectors into good ones and the duds:
“Then I identify the strongest ‘Sub-Sectors’ within each of those …
Then I narrow it down to ‘Narrow Industry Groups’…
And, finally, I identify individual companies and ETFs with the most explosive upside.”
And that’s how he finds the companies he recommends to his subscribers.
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Who is Chris Rowe?
Chris Rowe is a market analyst and a former broker and money manager. He has more than 20 years of experience working on Wall Street.
Chris Rowe joined the financial services industry in 1995 right out of high school. He held a couple of high-ranking positions in investment banks and money management firms where he served high net worth individuals. He has experience navigating the world markets because some of his clients had investments focusing on regions outside the country.
Most of what he did was analyze and manage investment portfolios of public companies, derivatives, commodities, private securities, and debt securities.
He quit Wall Street to publish financial newsletters. He co-founded Tycoon Publishing LLC which published its research for the benefit of retail investors. He now publishes his work via True Market Insiders.
He is the Chief Investment Officer of Rowe Wealth Management and the non-executive chairman of True Market Insiders.
Both publish advisory services targeting individual investors in the same way as InvestorPlace and Empire Financial Research.
In addition to publishing investment advisory services like Sector Prophets and Sector Focus, True Market Insiders is known for publishing institutional-level market research and providing high-quality investment education material.
For example, Chris Rowe offers an educational course that teaches you all the elements of his investing methodology. It is a 4-part class that shows you how to spot the strongest and weakest areas of the financial markets and gives you an understanding of how the market works.
Chris says that when you take the course, you “start viewing the market the way sophisticated fund managers view it.”
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What you get when you subscribe to Sector Focus?
Chris analyzes the markets and sends two recommendations to his readers at least twice a month. He does so more often when his actionable signals indicate that there are new opportunities at a particular time.
He singles out the most reliable individual stocks and ETFs in the sectors he has identified and then shares those tickers with his readers along with in-depth commentary, market analysis, and sector analysis.
He also sends a video called Featured Sector of the Month in which he tackles one specific sector each month. He demonstrates how to invest in the right ETF to make money from it.
He discusses various charts of general market averages and reveals the types of equities (mid-cap growth, large-cap value, etc.) that are doing better.
You also gain access to previous archived articles and videos. These articles enable you to track the performance of Chris Rowe’s Sector Focus newsletter.
The Sector Focus Subscription Fee
You get one year of Sector Focus for $168. It then auto-renews for the same amount.
Refund Policy
The Sector Focus service is a 30-day money-back guarantee (no questions asked).
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Sector Focus Conclusion
Chris Rowe distrusts commonly used market indices because he thinks that they are not good representations of the state of the stock market. He believes that different sectors (and subsectors) of the economy behave differently, something that the broad indexes approach ignores.
This goes against the common belief that indices like the Dow and the S&P are accurate depictions of how the stock market looks like. Therefore, he goes beyond broad market averages and finds the major sectors that are outperforming the overall market.
Typically sectors with that outperform the overall market go up by more than the market as a whole when it is bullish. They also have a higher support level than the market because they don’t decline by as large a margin as the market during a recession.
He believes that you should allocate more money to the right sector to give yourself a higher chance of bagging returns and at the same time avoid the losers to minimize your chances of losses. The Sector Focus premium service is based on this.
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This made us 6-figures in the last 3 months:
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