Beyond S&P 500 Index Funds: Here's the 1 Sector I'd Buy First as a New Investor
Buying entire baskets of stocks still makes for smart, instant diversification. But don't look past an obvious opportunity by insisting that only marketwide diversification is beneficial.
Overview
Even if you've only been investing in the stock market for a little while, you've almost certainly learned that stocks sometimes make completely unexpected and illogical moves. Watching stocks zig and zag for no reason that you can understand can wreak havoc on your confidence and lead you to make ill-advised portfolio moves. Maybe even keep you from branching out beyond your starting point of index funds that track the S&P 500. I've been there.
But I've also been investing for a long while and can tell you that the good news is that experience can help you figure out when to embrace the most basic of stock-picking and portfolio management rules and when to bend them.
Details
Here's a tip for even new investors: Make a point of being invested in at least one particular sector beyond broad-based index funds. And I'll tell you what sector I think is the place to be.
Source
Originally published at www.fool.com.