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OK I have 15k from a bonus I got recently. Been leery about dropping it in the market as I think its due for a pullback. What stocks or sectors do you think will grow over the next year. I'm debating housing as one.
I'm just speaking locally here, but Seattle hasn't had a single new large apartment development go up in the past 3 years. Market rates are skyrocketing because of this. The companies who own the properties are doing well. Take for instance UDR Corp. They're up 7% for the year and probably will continue doing well. Other REITs should do well too if you wnat to be more diversified. You can look at it this way - it's the worst economy in 80 years but people are still moving and still having babies.
And people are probably going to shoot me for this, but oil companies.
China, India, Brazil have been dominating new exploration activities for the past 5 years. China's been stockpiling oil for petroleum reserves like we do in the states, and their population loves their cars, especially big thirsty American ones for status symbols. Indians will have to stick to their small econo boxes but they're better than the little put-puts they drive usually. And I don't need to expand on how fast Brazil is growing. Finally, all those countries have more engineers and technical folks entering the workforce by at least a factor of two than the USA. That signals demand for ambitious projects that need oil.
That said I'd invest in a broad sector for oil that includes foreign companies.
Alternative energy is still 20 years away from being mature enough to be making a real difference.
For individual stocks, I like Apple. I think even if Jobs kicks the bucket they have a winning strategy for market penetration in the largest market - China. Within 5 years China will account for 10% of Apple's bottom line. Yes, it is way pricey per share and they don't have a dividend, but with millions and millions of devoted fans and a significant market share of consumer electronics of smart phones, tablets, and portable music players, and continuing innovation for small computers, I think Apple has legs.
The technology sector I think will continue to outperform the S&P for the forseeable future. Technological innovation and growth are accelerating and a mutual fund or ETF with growth oriented stocks should do well for the next 5 years. The world economy is improving, and people want gadgets and smartphones that do everything. That said, Microsoft is a dinosaur. Don't consider investing in them.
I do not own any of the companies or hold positions in the market with Apple or UDR.
If you do any investing you probably know all these, but just some thoughts I've had over the past few weeks
-If oil prices remain high, railroad companies might be a good place to be
-if the end of QE2 is going to hurt stocks you may want to be in healthcare / consumer staples as a defensive position
-if you think the recovery is full speed ahead, look at the raw materials (metals, mining)
-if you think the dollar will continue to weaken you might look at hard asset type securities or multinational companies with high levels of foreign sales
- telecom
- pharmaceuticals
- natural gas pipeline
- natural gas (we going to switch over to natural gas if oil stays expensive)
- Chinese and Indian companies that focus on selling stuff to their middle class
- american companies that can easily tap foreign markets
I work in oil, so I have a fair amount of those stocks including pipelines. Also have a good position in FCX and SLW, to cover the metals/mining. Have big Pharma too, people live longer and are going to be popping pills. Thanks for the info, maybe I'll add to exisiting positions. Will do some tech homework...
I work in oil, so I have a fair amount of those stocks including pipelines. Also have a good position in FCX and SLW, to cover the metals/mining. Have big Pharma too, people live longer and are going to be popping pills. Thanks for the info, maybe I'll add to exisiting positions. Will do some tech homework...
I think China might be a good addition to your oil-rich portfolio. China is in a long term uptrend but high oil prices are a negative and low oil prices a positive to their economy. So if oil tanks, China might perform better and that could make up for any shortfalls in your oil stocks.. and vice versa.
Have big Pharma too, people live longer and are going to be popping pills.
You are correct here, with the baby boom generation beginning to reach their elderly years. I've looked at the big pharmas, like PFE, MRK, LLY, and JNJ, and while I like their yields, I didn't like the lack of growth, impending loss of patents, and in the case of JNJ, the bad press over recalls. I decided on a different approach - CVS and WAG. No matter who makes the pills or holds the patent rights, all the pills are sold through the pharmacies. I've looked closely at both companies, and like CVS a little better, although I consider both good long term plays. Good luck with whatever you choose.
I thought about WAG and CVS but my company REALLY pushes us to get perscriptions through Medco (MHS).
I like the railroad idea...
SF I'm doing my DD on those, you mentioned EW before.
OilDog,
Read my last post on the Rare Earth Mania Thread.......
Quest Minerals ...QSURF.
Up another 10% today as I type ...$8.76
More to go in weeks ahead.
P.S. I just added another 40,000 shares of EWPMF yesterday @ .831 & .841
Also buying more GSFVF in this range.
Last edited by silverfox; 04-27-2011 at 01:05 PM..
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