We already have a thread for stock recommendation for 2018 - what about a one for sectors? Will it be the same old same old with tech shares? Will retailers make a come back? Will banks recover? Or will commodities roar back to life?
I suspect we may see commodities start to pick up a bit. Some retailers like WMT, AMZN, COST, and OSTK have done very well, while others are failing. I think the good ones will continue to do well, and the ones that have been failing in recent years will probably continue to be squeezed by the good ones. I think financials will do well with fewer regs and higher rates. I am personally pretty well diversified among most of the 11 sectors. I try to have somewhere between 5-15% of my stock $ allocated to each sector among most or all of the sectors. I do tend to accumulate stock of a number of companies in certain industries at times - such as biotechs, specialty chem manufacturers, and semiconductor companies in recent times - and in past years oil drillers, financials, internet companies, etc. But I try not to get too hung up on too few sectors / industries with too many dollars at any one time.
There is a growing belief that the price of oil will strengthen in the short to medium term which will have an obvious impact on oil company share prices. Personally I don’t think that the potential upside for the oil price is reflected in oil company share prices, at least not yet.
Automobile, Pharma, IT and Bank sector are top picks of 2018. Energy sector will remain in limited range, so Prefer Short-term positions according to trend in Energy sector.
I agree, we will see a return to more traditional sectors such as banks during 2018 as technology valuations become extended.
One area in which I am pulled in both directions is gold - I would have expected a stronger gold price in light of ongoing worldwide economic challenges and political concerns. On the flip side, this run in the US markets cannot go on forever and the old over stretched elastic band scenario might come into play if the rise continues unabated. How far back would the markets "ping"?
We are not going through Cold-war period anymore. 2015-2025 This is Global Recession or Revolution Period for Global Economies where performance or skills of Political leaders matters most. Corruption, Poverty, Terrorism, Pollution these are global issues and How Politicians fight against these issues matters most. Equity markets of Countries with strong leadership will go only up and up. Countries with poor system and leadership will go only down and down. This is the reason behind war threats. Gap in between Poor and Rich will get bigger on Nation basis. Countries with poor system and leadership, They give importance to wars or offering better system to citizens ? Future of Cryptocurrencies and Gold depends on that. If war is the solution then Gold will destroy Cryptocurrencies earlier and If System improvisation is the solution then Gold-Cryptocurrencies will get balanced after responsible actions of Govt. and Central Banks which will postpone wars for 40-50 years more. About US, Trump's policies pushed Crude in US favor so no downfall in Russia, Japan, Europe, Southeast-Asia, North-American, South-American markets. Overall Global Economy is bullish. Possible downfall only after Western Economies started cutting interest rates. Still EU has not increased rates so Global Equity markets are Bullish for many years. In future, Electronic Vehicles will get introduced, in fact already sale of Electronic Vehicles started on domestic level so, to increase affordability of Consumers, Inflation rates must get balanced. Agriculture sector will get big boost in future. So overall, This is start of new era from where, better we think about Buying in Equity markets for Long-term rather than Short-term corrections. About Gold, I think, better we speak when Gold will break 1100$ or 1400$.
