Sam Stovall, an investment strategist at Standard & Poor’s, forecasts 2011 will be a favorable year for investments. The favorable U.S economic growth alongside robust global stock markets, presents an optimistic picture. Nonetheless, uncertainties exist due to the European sovereign debt crisis, which may impact the global economy. Therefore, careful navigation is advised as debt management in countries like Greece could influence global investments. Consider these four investment strategies to improve your financial status:
1. Investing in industrials: A wise move
The U.S economy is rebounding and markets are growing due to increased business and infrastructure spending. During this early phase of economic expansion, investing in the industrials sector could be lucrative. Analysts predict that these companies will continue performing strongly for some time. Investing in businesses such as engineering, railroads, construction may prove beneficial. Potential investment options could include United Technologies Corporation, General Electric Co., Caterpillar Inc. and United Parcel Service Inc.
2. Material Sector: A safe harbor
The Material Sector, encompassing chemicals, fertilizers, paper products etc, is tied to commodity prices and is therefore likely to see growth. U.S. companies in this sector will benefit from rapid development in other regions of the world. Increasing demands from emerging economies, revived economies of developed countries, and stable stock markets may result in rising oil and metal prices. Consider companies like Bemis Co. Inc, Owens-Illinois Inc., Praxair Inc., and DuPont.
3. Escalating technology shares
Consumer enthusiasm for tech gadgets is rising, with steady increases in business investments in computers, software, and communications. Hence, expectations are high from this sector. Thanks to significant international sales, the technology sector is generating impressive profits. A survey from Russell investments suggests that 80% financial advisors are optimistic about the tech industry. IBM and Google Inc. might be sound investment decisions.
4. Energy stocks: A viable option
In the aftermath of the financial downturn, the global economy is favoring multinational corporations trading in oil and natural gas. Companies offering dividends are particularly attractive. Insights from Richard Bernstein Advisors LLC suggest that energy stocks could outperform other sectors this year. According to Ed Maran of Thornburg Value Fund, rising oil prices are imminent. Recommended investment choices for energy stocks include Baker Hughes Inc. and Marathon Oil Corp.
Investment predictions are inherently uncertain, but a thorough analysis of current trends can give some indication of future trajectories. If you plan to invest a substantial sum this year, keep these suggestions in consideration.
By Kevin Craig, a financial writer associated with Oak View Law Group (ovlg), providing debt settlement advice since 2007 and guiding numerous individuals towards debt-free living.
