As investors look to benefit from the current bullish market, selecting which sectors to invest in is a critical decision. Knowing which sectors are expected to show strong performance is key in making wise investments.
Recently, the stock market has experienced a significant surge, as investors seized upon what is generally referred to as a “year-end button”. With promise of peak profits, analysts are now suggesting a number of sectors as optimal choices for those looking to capitalize on the current trend.
Value investing has been a popular strategy for those seeking to begin or add to their portfolio. As a form of stock-picking, it center on finding companies with solid growth potential and purchasing the stock at a price below that company’s true value, which is referred to as its intrinsic value. Energy, technology, and financial services are among the sectors where value investing has already seen significant returns.
Momentum investing, on the other hand, focuses on identifying stocks that have seen the highest return over recent periods and buying quickly before the prices rise too high. Healthcare, consumer discretionary, and technology are three of the strongest sectors to watch for momentum investing opportunities at the moment. The Nasdaq and S&P 500, two of the top indices in the US, are indicating strong sector growth in these three particular areas.
Finally, a third strategy that stands to benefit profiting from this bullish market trend is ETF investing, where investors are looking to invest in a variety of exchange traded funds, or ETFs. ETFs are index funds that hold a basket of stocks, allowing investors to leverage the performance of a variety of sectors without consideration of individual stock security. Right now, investors have several ETFs to consider, in areas such as real estate, foreign markets, and commodities.
So as investors look to capitalize on the markets’ current bullish trend, they would do well to consider value, momentum, and ETF investing as viable methods with expected solid returns. With sectors such as energy, technology, financial services, healthcare, consumer discretionary, foreign markets, real estate, and commodities already showing strong performance, the opportunities are there for those who are willing to take the risk.