The Top Sectors to Invest In - Why investing in “bricks” has always worked for many successful investors…
- When the economy goes well, this sector tends to perform much better…
- As people shift their spending habits, analysts expect a huge influx of this…
Recommended Link Dear Penny Stock Millionaire, As you might now, all publicly-traded companies are regulated to disclose their financial information, including earnings, every quarter. After the first three quarters of the fiscal year, they have to file the 10-Q report, a partial report on their financial performance and operations. After the fourth quarter or after their fiscal year-end, they have to file the 10-K report or annual report. Because most companies are required to file within 45 days of the fiscal quarter-end, and most companies follow the calendar year schedule, you’ll see a lot companies reporting their earnings in the same period. This period is called the earning season. Why is this important? Because this period can create a huge opportunity for investors and traders to take advantage of significant stock runs that occur as a result of these earnings releases. As stock prices reflect investors’ expectation about their earnings, and companies can beat, meet, or miss analysts’ earning expectations, you’ll see a lot of stocks moving, high volatility, and better opportunities to trade during that period. The bottom line is that you must pay attention closely to this period. You don’t want to miss the many opportunities available to potentially grow your account. Examples of Top Sectors to Invest In The GSCI methodology counts 11 sectors in total. They include energy, materials, industrial, consumer discretionary, consumer staples, health care, financials, information technology, telecommunication, utilities and real estate. To learn more details about each sector, you can check the MSCI website. Each sector has its own index to track its performance. That’s one way investors have to follow how a sector is performing. Let’s take a look at five of the most important sectors of the market. Information Technology This sector comprises companies selling software, hardware, semiconductors and/or technology-related services like Microsoft, Apple, Intel, or Cisco. Companies is this sector have driven market growth over the last several years. This is the biggest sector by market capitalization and represents close to 25 percent of the total market. Some technology companies, like Alphabet (GOOGL) and Facebook (FB), used to belong to this sector, but they have been now reclassified to the newly expanded communication services sector, which now replaces the old telecommunication sector. Companies in this sector with innovative business models — or “the next breakthrough idea” — are all the rage, so many investors and traders follow companies here. Consumer Discretionary This sector includes companies that sell products or services that are considered non-essential or discretionary by consumers. When the economy goes well, this sector tends to perform much better because consumers have that “extra” money to spend on non-essential items. Companies like hotels and casinos, restaurants, education services, media and entertainment companies, apparel, and big-box and internet retail stores are part of this sector. Big names like McDonald's, Nike, Starbucks, and Amazon are classified as consumer discretionary companies. When you think of spending money “out-of-home” in leisure or retail, this is the category to think of. As many people shift their spending habits to enjoy “experiences,” analysts expect a huge influx of money coming into this sector, so monitor the market to spot interesting investment opportunities. Recommended Link "The biggest wealth run in America's history" Did you miss this? If you’re like most Americans chances are you did. On March 27, 2020, while the entire world was distracted with the COVID-19 pandemic… The U.S. government signed a historic law that some are calling “an epic moment”. The law could create one of the greatest wealth runs in the history of the United States Even President Trump has said this law “is going to make a lot of people very happy…” To discover how you can get in on this opportunity… | | Financial Sector This sector includes major financial groups, banks, insurance companies, investment banking firms, and brokerage companies, among similar outfits. Citigroup, Goldman Sachs, Bank of America, and American Express are a few of the big names in this sector. As the government rolls back costly compliance regulations that used to apply to small and regional banks and financial firms, there good opportunities to explore here. Real Estate Investing in “bricks” has always been a part of the strategy of many successful investors, either by investing in properties themselves or through vehicles like real estate investment trusts (REIT). A REIT is basically a company that buys and operates income-producing properties like shopping malls, office or apartment buildings, hospitals, and warehouses. They’re excellent income-producing investments because, by law, they need to distribute at least 90 percent of their taxable income to investors via dividends. As with any investment in real estate, the best opportunities are found on undervalued companies that generate free cash flow. Recommended Link Learn How to Chart Trade Your Way to $1K Markay Latimer is a mastermind chart trader. Her new strategy will help anyone target $1K a month with just 30 minutes a day of trading. She’s about to teach a class on how to do it. | | Energy When you think about energy stocks, the first thing that comes to your mind is likely oil. While there’s a lot of market expectation about alternative energy, the truth is that the bulk of the market still lies in traditional oil and gas companies. This type of stock tends to do better during times when oil price rise and stay high, and then pull back during times of falling oil prices. That’s five of the 11 sectors, but you get where this is headed. You can check out the other sectors here and here. Regards, Tim Sykes Editor, Penny Stock Millionaires P.S. I must warn you. Due to the stakes involved… This message will be removed from the internet tonight. If you fail to look at this, why bother reading our research? The biggest opportunity of your life is sitting before you. Click the secure link below for access. ⇒ SECURE LINK FOR YOU WARNING: This is coming offline TONIGHT. |
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