Sam Stovall, an investment strategist at Standard & Poor’s, believes that 2011 is going to be either a good year or a very good year in terms of investment. The positive U.S economic growth coupled with strong global stock markets, are making the analysts quite optimistic. However, do not hope for a smooth ride because the sovereign debt crisis in Europe can possibly affect the global economy. The many euro zone countries like Greece are resorting to debt management which can affect global investments. So the investors would need to tread cautiously. Here are four investment ideas that can boost your finances at the end of the day:
Investing in industrials: a smart decision
The U.S economy is getting back to its feet pretty fast and the markets are expanding with increased business and infrastructure spending. In this earlier stage of economic expansion, investing in industrials sector can pay off. The analysts expect that the strong run of these companies is likely to continue for sometime. So put your money in the companies involved with engineering, railroads, constructions etc. You can count on United Technologies Corporation, General Electric Co., Caterpillar Inc. and United Parcel Service Inc.
Material Sector: a safe bet
Material Sector, which includes chemicals, fertilizers, paper products etc. are related to commodity prices and consequently, it will experience market growth. The U.S companies which belong to materials sector will be exposed to fast developing parts of the globe. Increasing demands from the developing countries, resurrected economies of the developed countries and steady performance of stock markets will possibly result in the hike of oil, and metal prices. Check out companies like Bemis Co. Inc, Owens-Illinois Inc., Praxair Inc. and DuPont.
Rev up technology shares
The love of consumers for tech gadgets is soaring. The business investments in computer, software and communications are steadily increasing. The expectations from this sector are naturally very high. With huge foreign sales, the technology sector is making remarkable profits. A survey by Russell investment reveals that 80% financial advisors are bullish on the tech business. IBM and Google Inc. can be the right choices for investment.
Energy stocks can be a great choice
In the post-financial depression period, the global economy is favoring MNCs which trade in oil and natural gas. The companies which pay dividends are particularly preferred. Sources from Richard Bernstein Advisors LLC say that energy stocks can take can top position and outperform others in the current year. Ed Maran, who is associated with Thornburg Value Fund, opines that oil prices will definitely soar in the coming days.
The top choices for investment in energy stocks include Baker Hughes Inc. and Marathon Oil Corp.
Though investment is a rather unpredictable thing, you can often anticipate the future by analyzing the current events. So, if you are planning to invest a large amount of money this year, then you should keep the above points in mind.
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Kevin Craig is a financial writer associated with Oak View Law Group (ovlg). He has been providing advice on debt settlement since 2007. With his advice, many people are now living a debt free life.