Technical analysis of industry groups by Richard K. Carlin, Ph.D.
ARTICLE SYNOPSIS ...Technical analysis of industry groups
by Richard K. Carlin, Ph.D.
Stock market analysis is usually done in one of two ways: either on the market itself to predict whether
stocks as a group are in an uptrend or downtrend, or on individual stocks to discover undervalued issues.
No one, however, has consistently outperformed the market using these two approaches. Why? The one
thing in common to both strategies is diversification of the investment portfolio.
Since the market is nothing more than an average return on many stocks, it acts like a diversified
portfolio. Thus, no matter which investm...
AUTHOR: Richard K. Carlin, Ph.D.DATE: NOV 1988