Sector Rotation 5th Edition - 9.5/10 rated by ChatGPT

 

Review my book "Sector Rotation 5th Edition by ChatGPT

 

Many thanks to the most unbiased reviews by AI. This review was done in June, 2025, and is in its entirety. AI also helped me in writing  Overviews and Introductions.

 

I accept all suggestions. However, I did repeat a few important concepts, so the reader does not have to waste time in searching for them. Some examples are older for a good reason. For example, if I did not use the market crash of 2000, I only had one market crash to illustrate. It is always better to follow the winners, though I have included my blunders in investing.

 

ChatGPT review

 

Overview

Tony Pow’s Sector Rotation: 5th Edition is an exceptionally thorough and practical guide that stands out in the crowded field of investment literature. With over 500 pages and 21 distinct strategies, this book offers a deep dive into the theory and execution of sector rotation, drawing on the author’s decades of hands-on experience and real-world performance.

Strengths

✅ Unmatched Strategy Depth

• The book covers 21 sector rotation strategies, far surpassing competing titles that usually offer only one or two.
• It includes approaches ranging from simple ETF-and-cash rotation for beginners to advanced momentum, contrarian, insider, and macroeconomic strategies.

✅ Proven Performance

• Pow backs his strategies with concrete results—including a fivefold portfolio growth through sector rotation, and outperformance of the S&P 500 by nearly 184% across his recent book series.
• Specific calls, like recommending SMCI with a 272% return, and oil at the 2016 bottom, establish his credibility.

✅ Tailored for All Investor Levels

• The book includes dedicated sections for beginners, intermediate, and advanced investors.
• Each strategy is labeled with difficulty and practical tips, helping readers choose based on experience and time commitment.

✅ Educational + Entertaining

• Pow intersperses serious content with humor, real-life anecdotes, and fillers to lighten the tone—creating an educational yet engaging read.
• AI-assisted summaries and commentary from tools like ChatGPT and DeepSeek help distill complex topics into actionable insights.

✅ Practical Tools and Real-World Application

• Heavy use of Finviz, Fidelity, and ETF databases for real-time sector evaluation.
• Uses technical indicators like RSI(14), SMA, MACD in a digestible, non-overwhelming way.
• Includes links to video tutorials and online references to support readers using digital versions.

---

Areas for Improvement

⚠️ Length and Redundancy

• At over 500 pages, the book can be overwhelming. While repetition helps reinforce concepts, some ideas are restated more often than necessary.

⚠️ Flow and Navigation

• The structure is more reference-like than linear. Beginners might benefit from a “quick-start roadmap” or flowchart to guide initial reading.

⚠️ Design and Formatting

• Some visual elements (e.g., charts and tables) may not render well on small e-reader screens. The author does note this and offers workarounds.

---

Noteworthy Features

• AI Integration: The book leverages ChatGPT and DeepSeek to review, polish, and even write several sections—showcasing how investors can benefit from AI in content creation and market analysis.
• Humility and Honesty: The author shares not only successes but also missed opportunities and mistakes, offering readers real insight into risk management and psychological pitfalls.
• Top-Down & Bottom-Up Coverage: The mix of macroeconomic cycle theories (e.g., sector sensitivity to interest rates and politics) with micro-level stock selection tools makes this comprehensive.

---

Final Verdict

📘 Rating: 9.5/10
Sector Rotation: 5th Edition is arguably the most complete book on sector rotation currently available. It combines depth, practicality, and personal insight in a way that’s both approachable and actionable. If you're serious about learning sector rotation or upgrading your investing strategy, this book should be on your desk—not your shelf.

 

Quality of investing news

 Not all financial news is created equal. Some headlines are outdated by the time they reach you, offering little to no edge for making investment decisions. Still, certain news items—though delayed—can signal worthwhile actions.

 

To evaluate the usefulness of investment-related news, I group it into five categories, ranked from “A” (most actionable) to “E” (mostly noise). Keep in mind that using true insider information is illegal—but unfortunately, enforcement, especially among politicians, remains weak. Let’s hope that changes.

---

A. Policy-Level News (Highest Quality)

This includes announcements from the President or top government officials. For example, in 2025, Trump could move markets up or down simply by announcing or delaying tariffs on China.

Politicians also have access to proposed legislation that may benefit specific companies or sectors—giving them a powerful (and often unfair) edge.

💡 Tip: News from decision-makers is extremely market-sensitive, but by the time we hear it, it’s often too late. A simple strategy? Buy on the dip, sell on the rebound—riding the volatility caused by these announcements. Be warned: it does not always work and use stops to limit your losses.

---

B. Insider Moves by CEOs and Gurus

When company insiders or major investors act, pay attention. These individuals know what’s coming. For instance:

• A pharmaceutical company’s stock may skyrocket after a successful drug trial.
• Buffett quietly sold much of his Apple stake a month before the EV project cancellation became public.
• His partner Charlie Munger made huge gains from early investments in BYD, China’s EV giant.
• Buffett’s move to buy five undervalued Japanese stocks was followed by a price surge.
• In early 2025, Buffett has been accumulating cash; one estimate is as high as 50%. It would be risky if the US dollar depreciates caused by our huge national debts.

💡 Tip: Track insider buying and selling using tools like Finviz. Follow major investors—but be cautious; the news is often already priced in.

---

C. Institutional Disclosures

Mutual fund managers and institutional investors are legally required to disclose their holdings, often quarterly. While helpful, this data is usually dated by the time it becomes public.

💡 Tip: Monitor trends, not individual trades. Look for what sectors are being accumulated or exited.

---

D. Financial Media Commentary

TV analysts and financial news networks provide broad market updates. While informative, these stories are often too general or already baked into prices.

 

Example: “Ukraine war continues” might not be breaking news, but it can imply strong tailwinds for defense contractors. Similarly, a bumper crop of coffee could suggest lower coffee prices ahead.

💡 Tip: Use common sense. Think beyond the headline—apply macro logic to identify opportunities.

---

E. Public Chatter (Lowest Quality)

If your barber, neighbor, or the proverbial shoe-shine boy is giving stock tips, you’re probably too late. Widespread awareness often signals a market top.

💡 Tip: In some cases, doing the opposite of the crowd can be surprisingly profitable. Watch out that the peak could be there, and could be followed by a downfall.

---

ChatGPT rewrote my article making minor changes, and the writing is in the expert level.

This article will be included in my book "Art of Investing 5th Edition" available from Amazon.com.

DeepSeek rated this article 8/10 with some recommendations. I did not take the recommendations, as they are more 'what if'.

How ChatGPT changes a mediocre writing into an expert one

 Original:

#Filler: Why we went to the moon 50 years ago, but not now? We did have to fight a cold war with Russia then, but with China today. As a result, until lately, we did not have the funding. The shuttle program slowed our rocket development. The moon rocks secured by China proved that we had been to the moon. Our iPhone is million times more powerful than the computers used in the Apollo project. Hence, we have to appreciate those who did all the calculations by hands and/or slide ruler (remember that?) and those assembly codes.

Rewrite:

Filler: Why Did We Go to the Moon 50 Years Ago—But Not Now?

Back in the 1960s, the U.S. had a clear motivation: win the space race and outshine the Soviet Union in the Cold War. That urgency fueled funding, innovation, and national pride.

Fast forward to recent decades—our rivalry shifted from Russia to China, but space exploration took a back seat. Budget constraints and the costly shuttle program stalled our progress in deep space missions.

Ironically, today’s smartphones are millions of times more powerful than the computers used during the Apollo missions. Yet, those early engineers accomplished the unimaginable with handwritten calculations, slide rules (remember those?), and low-level assembly code.

China’s recent moon rocks serve as an unexpected confirmation: yes, we really did land on the moon.

Let’s take a moment to appreciate the brilliance and courage of the pioneers who got us there—with little more than determination, math, and metal.