Use this U.S. Navy Trick for Investment Success

by Andrew Zatlin

It’s easy to overthink your investment strategy…

Especially when the stock market is down.

So today, I’m going to show you a trick…

I’ll show you to “keep it simple” by focusing on the right sectors!

For a transcript of this video, see below. This transcript has been lightly edited for length and clarity.

Use this U.S. Navy Trick for Investment Success

The U.S. Navy follows a tried-and-true principle:

KISS — “Keep it simple, stupid.”

And when it comes to investing, this is perfect advice to follow.

So let’s keep it simple:

Invest in companies that are growing. Stay away from those that aren’t!

But how do you know which companies are which?

That’s what I’ll explain today.

Out of Control

Why is the market so crazy lately?

Well, it’s because the Fed has lost control. And now it’s trying to regain control by raising interest rates. As a result, less money is flowing into the market and stocks are getting hammered.

But here’s the thing: the overall market may be sinking, but certain sectors are growing.

How can you spot this growth so you can get positioned in advance?

You’re Hired!

Simple: hiring data!

Hiring is a tell-tale sign about whether a sector is thriving or dying.

Using my proprietary data, I track hiring at the company level. Then I aggregate it to show what’s going on in the S&P 500.

For example, here’s hiring for companies in the S&P 500 over the past 10 years:

As you can see, while demand for workers recently peaked, it’s still at a high level. That’s because there’s still enormous growth in the economy.

As for the sectors that are growing especially quickly…

Triple-Digit Growth

Let’s start with the semiconductor industry. Holy cow!

Hiring for almost every semiconductor company is growing at triple digits. And much of this demand is from smaller companies — the type that have a lot more growth potential.

Defense is Strong

Next, check out the aerospace sector. Here, I’m seeing consistent, double-digit growth in hiring.

This sector includes military defense companies. And the war in Ukraine has been a boon for big players like Raytheon (NYSE: RTX) and Lockheed Martin (NYSE: LMT).

I view this sector as a long-term trend, and the hiring is reflecting that.

Last But Not Least

Finally, focus on the market for consumer services.

People are spending more money these days. And ever since the Omicron wave passed, we’re seeing an uptick in hiring from consumer-service companies.

Granted, this is a broad industry. But where I’m seeing specific growth is in sectors like travel and beauty/healthcare.

Of course, not every sector is “hiring on all cylinders”…

No Construction Zone

For example, in the construction industry, I’m seeing some hiring pullback, specifically with respect to home construction:

Demand for builders is waning. And even a company like Home Depot (NYSE: HD) is one I’d shy away from.

Keep it Simple, Stupid!

Bottom line: KISS.

Invest where there’s growth. And to spot that growth, look to the companies that are hiring.

If they’re putting their foot on the gas, it means they’re expecting a lot of money coming in.

Today, I shared a few sectors where I’m seeing soaring hiring demand.

To see my recommendations about which companies in these sectors have the greatest profit potential, check out my Moneyball “Pro” pick below.

In the meantime, Zatlin out. Talk to you soon.

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In it to win it,
Andrew Zatlin
Andrew Zatlin
Moneyball Economics