Originally published on Blossom on March 19th, 2024 Please find a retrospective commentary at the end. Conventionalists will put you in an S&P 500 index fund and tell you to forget it. There’s a statistic, often regurgitated by the masses, that some 80-90% of investors can’t beat the $SPY. If you don’t have the TIME or care to have your nest egg working for you - that can be a lazy plan. But for anyone willing to dig in and learn-realizing that routinely outperforming the SPY by just 1% outperformance has an incredibly profound impact on your portfolio. Seems like a daunting task in a world of naysayers. But I am sharing a lower risk ETF strategy that is a relatively straightforward way to do just that. After years of monitoring on a daily basis and decades of backtesting, this strategy works extremely well to outperform the S&P500 ....... by a lot more than 1% each year! Research shows that ~50% of a stock’s return is attributed to the movement of the sector to which it belongs (the rising tide lifts all boats phenomenon). The other half of the stock’s performance is related to the stock’s fundamentals. Because this observation is constantly repeating itself on a daily basis, you will see TIMES where companies with weak balance sheets rise when they shouldn’t (sector in favor) and fall really hard when it should (sector out of favor, fundamentals are weak). Vice versa for a company whose sector/subsector is in favor that has strong fundamentals (e.g. NVDA). So there are 11 sectors and 20 subsectors. Each one has an ETF. Adopting a systematic approach of rotation will allow you to routinely outperform the S&P500. Once you dig in on this, you will learn so much more on how to read the market and understand what the market is telling us - not what we want to tell the market. Here’s just one gem of insight as an example: Pull up a year to date chart on $SPY (S&P500 ETF), $XITK (Innovative Technology ETF), $KCE (Capital Markets ETF), and $XLE (Energy ETF). Which one do you think was the best performer so far in 2024? You are probably surprised to learn that it’s XLE, the energy ETF. Not many talking about it. This kind of advantaged insight presents itself persistently as sectors and subsectors fall in and out of favor with Wall Street - either by design or by fundamentals.....or both. But you don’t need to know why, you just need to know how to read the markets instead to routinely get a leg up on the S&P500. This is a key point. A lot of investors are trying to be market makers with hope and buy stocks they WANT to reverse course and go up, regardless of sector favorability. When the simple approach is to “Follow the Sector!” Once you gain confidence in this strategy, you can move on to more advanced strategies that I use that work in all markets. Hint: Watch my portfolio and you’ll find select stocks within the favored sectors......for even more outperformance. Trying to really provide proven, actionable perspectives that run counter to the conventionalist propaganda fed to the masses of us retail investors. Retrospective Commentary — September 4th, 2026 The approach still remains at the core of our process for analyzing the market and has been key to our success since we started sharing our work in March 2024. Make sure to tune in as we prepare another retrospective publication on our first “This is the Way!” series post, which was a real-time application of KTS #2. This will be published later today. Beskar Capital has developed a proprietary approach to systematically monitor the strength of each sector and subsector on a weekly basis. And it's now available to our members every week. We named it: THE SECTOR SURFER 🏄🌊 See below an excerpt from the Sector Surfer's description available on our website: "This page will monitor the performance of all sectors and subsectors while simultaneously taking into account future investability through a proprietary approach. We start with a higher-level sector analysis and then dig deeper to find the stocks within these favored sectors and subsectors that fit the KTS toolkit. [...] Research suggests that, on average, 50% of a stock's performance is driven by the performance of the sector it belongs to." Here's a blurred preview of the Sector Surfer attached below. Every week, we publish the table, along with a brief analysis of the changes from the previous week, what to watch for in the upcoming week, and our general view of the current state of the markets. This is our weekly compass. 🧭 THE KTS SERIES We’re fast-forwarding the legacy KTS series (#1-91) – originally published on Blossom – at a rate of 3 posts per week here on X. As we approach the inflection point in the real estate/banking crisis cycle, these posts cannot come fast enough for the latecomers. If you want to fast-track your learning, you can get access to the entire series at once with the KTS e-books available on our website. Our website also gives you exclusive access to every subsequent KTS post, starting with #92 up to currently #115 …… and counting, as new KTS posts are published every Sunday now due to the urgency. Those remain membership exclusive. A paid membership website also gives you access to our full TOOL SUITE: 📖 Weekly KTS posts 🏄 Weekly SECTOR SURFER 📝 All TRADES + RATIONALE 🔭 Beskar INDICATOR INSIGHT 🏒 Beskar BREAKAWAY 🐳 Beskar WHALE WATCHER 🐺 Beskar WOLF TRACKER 🐕 Beskar DIGGER DOG 🧑🧑🧒🧒 Beskar STEAD (Community feed) 💯 And much, much more
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4 Comments
Mike L@noviceadvisor · 11h
I like the Silver & Platinum 500 🤣
Mika @goldenfit · 15h
I remember that This is the way post where you bought one share of $XME and one share of $XES . Curious to see what's the performance since then.
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