Bill Gunderson

Being in the right areas of the market at any given point in time can vastly improve your investing experience. The obvious next question is, what are the right areas of the market at the current time?

Depending on who you ask or listen to, you will get a variety of answers. Some will say that the right areas are the ones that are beaten down and out of favor. Like the emerging markets that are trailing the U.S. market by a wide margin this year. Like precious metals which have seen gold prices drop from $1800 per share to $1300 per share.

Others would say to spread your money around in a wide variety of asset classes. That way you will be sure to own the ones that are doing well. The problem that I have with this advice is that it also insures that you will be in the asset classes that are currently in bear markets like bonds, precious metals, and emerging markets.

For me, I like to be in the areas of the market that are performing the best. When they are no longer performing the best, I move on. I don’t care if it is high-yield bonds, silver, China, inverse funds, etc., etc., that are performing best at any given point in time, that is where I want to be.

So what has been performing the best in 2013? Where are the best places to be in the market right now? I am glad that you asked that question, because this is a year that the leadership in the market has been very narrow and concentrated. This makes it a lot easier to find some potential big winners.

I rank 45 different asset classes on a daily basis. I am happy to report that for the last twelve months there has been little change at the top of the leader board. This is a good thing because it means that we have trends in place. Trends are good as long as they remain in place. Trends can be very good money making propositions.

Here is the current leaderboard of the various asset classes that we have to choose from:

Data from Best Stocks Now app

As you can see from the above screenshot, the leadership in the market continues to be dominated by equities, and more particularly small and mid-cap domestic stocks.

By contrast, here is a screenshot of the worst asset classes in the market right now:

Data from Best Stocks Now app

Bill Gunderson

Bill Gunderson is the CEO and Chief Market Strategist of Gunderson Capital Managment in San Diego, CA. He is also a professional money manager, former research analyst, author of Best Stocks Now.