Telecom: It’s Time To Face Reality

telecomSteven Bauer: The Telecom Industry Groups is one of several within the Utilities Sector. It is clear from my Forecasting that over the past several months that there has been notable deterioration in this Industry. Knowing this it is a matter of close monitoring of all the component companies within any grouping such as Telecom. When there are an increasing number of companies breaking down, it soon becomes very clear on the graphic or chart for that Industry Group. With this in hand Investment decision-making (Buy / Sell / Hold) becomes quite easy.

The Utility Market Sector still have positive Industry Groups, Companies and ETFs that are doing well. The Telecom Industry Group is one of those that has turned the corner to be Un-Favorable. My Forecasts suggest that the good times of the past are waning along with the Utility Sector itself.

My current Forecast for the Telecom Industry suggests that selectively Holding Cash is more prudent than holding many of the Companies long. So, I do have a Strong Bearish “Warning” in place. This level of warning is only activated when I see some possibilities of again taking profits as being the current best investment strategy.

I continuously preach that Selectivity is what profitable investing is all about. When buying I select the current best and when selling or shorting I select the current worst.

You might want to read my “Being Selective” and my “Rotation Model.” articles for further insight into my investment methodology. I often share: “As the marketplace cycles from Bull to Bear typically the participating securities “rotate” into favor and then back out of favor. This produces an entirely new batch of both Industry Groups and individual Companies / ETFs on my Buy / Short asset management list from month to month.” These two Buy and Short list is simple refined through my analytics of being very selective when making Buying / Selling or Shorting / Covering investment decisions.

Staying on top of all of this in an ever-changing world of economics is quite a trick and requires much time these days. Some do their jobs well and others do not, it is just that simple.

A Special Note for Seniors / Retired & Income Investors

My Mission is to provide guidance and direction for conservatively providing consistent annual and superior dividend and growth results for each Formal Recommendation I make to my Clients. Utility companies often provide very good dividend payments and in good times growth of your investment dollars. Unfortunately, my current forecasts for many (dividend paying) Utility Companies are not going in the right direction with regard to growth of your principle. At these times in the ever cycling of the stock market I suggest that holding cash, for selected un-favorable Utility companies is currently your most prudent investment strategy.


The Table below shares several of my Component Industry Group Indicators and an ETF of the overall Telecom Industry. At this time they are not doing well, with a clear negative variances or divergence in my Analytics of how they Forecast.

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Note: There are many more combinations of the above information in my Forecast before any investment decision can be prudently made. My Notes for Table will offer help to understand my Methodology of “Investing Wisely.” I hope this will provide you with profitable guidance.

(...)Click here to continue reading the original article: Telecom: It’s Time To Face Reality [SPDR Series Trust, Verizon Communications Inc.]

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