Monday, January 5, 2009

The New Growth Spots

Over the last 6 months, growth has been rarely seen in any industry as the markets closed significantly down for the year. Healthcare has remained strong as it is one of the few if only stable sectors. But when looking for growth where should we look for 2009? I believe the market has reached a bottom as have most sectors. The worst is behind us. Now we just wait out the recession. Banks will remain volatile as losses are absorbed into balance sheets and takeovers and mergers are finalized. It will still be awhile before this become a safe place to try and invest. But as for now the risk remains too high. Commodities and energy have seem to begin a rebound from their lows and look like it could be the main growth spot as prices will inevitably pursue their previous highs. Industrial growth will remain slow as they normally follow the economy. Most of your portfolio of stocks should remain value based as volatility does not just stop and economic factors could see any array of numbers for a given month. Ease yourself into growth stocks as these could outperform over the next two years as the market rebounds and consumer confidence gets its mojo back. Be patient and always do your homework before jumping on any bandwagon.

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