We have been going through what has been a mini correction in the market. It was not a full correction. But that's help you and me, the investors. The Dow is back above 16,000. Many of the so called experts think it will rise to 17,500 to 18,000 by years end of 2014. I think this is being a little over optimistic. I feel we are going to see some increases in the interest rates as the government continues to less and less help support the markets. I personally do not think this is a bad thing, but it may result in less profits for the investor as this happens. Remember when mortgage rates and car loans were from 6 to 10% interest? Not to say we will see that in 2014. But we will gain in the next few years as our economy grows and stabilizes. So you want that new house or car? Now is the time to do it. As you will only continue to see a rise in interest rates as time moves forward.
So what is HOT right now in the stock market that I am personally watching, Energy Stocks. In the next several years we should see a big rise in energy stocks, especially those heavy in natural gas production. This may be something to research and talk to your financial advisor as what would be good for your portfolio.
Medical Stocks are always going to be good choices in your portfolio for the future. I tend to stay away from Health Insurance carries such as Humana, Cigna, et.. They don't have the profitability in the market that other choices will gain for you. Lets look at Rite-Aid Pharmacy (RAD). If you have been on this gravy train since August 2013 you would see over a 90% return on your investment. And yes, this is in my personal portfolio of individual stocks. CVS Pharmacy (CVS) and Walgreens (WAG) are the big boys in pharmacies, but the profit margins for the investor have not been there like Rite-Aid over the past year. I also like CorVel (CRVL). They have a good history in the market. Although they are no longer in my current portfolio, I have made lots of money off them in the past as an investor. I even use to work for the company many years ago. What about Forest Laboratory (FRX). Since August of 2013 when this stock was pretty flat it is up over 112%. I personally do not have this in my portfolio, but is on my watch list. Kick yourself like me if you failed to get in prior to August 2013. For those of you that like Mutual Funds (I do too) Take a good look at (PRHSX), This is a good T.Rowe Price Mutual Fund that deal strictly in Healthcare Stocks. This is the only Mutual Fund for me in the healthcare sector. It is currently up over 14% since August 2013.
Right now another good place to be invest is in retail. Good retail tail stocks. Jos. A. Bank (JOSB) wanting to buy out Eddie Bauer. Jos. A. Bank stock took a jump and I think the time to sell is now as the deal has hit a snag.
For those that like to play Stock Spits (like me). They are out there. Some are good. Some not so good. I had invested strongly (for me) in V.F.Corporation (VFC). It had a nice split that met my criteria and it paid off like a hot slot machine at the casino. After the split it continued it's climb and I sold it off and took my money and ran. This is what I look for in Stock Splits. A stock that is going to split below it's 52 week low (more the better) and hopefully continue it's climb in the market. Right now in the market what looks to me that it has that potential? Westlake Chemical Corp. (WLK). Yes, I practice what I preach and I reinvested money and got back in with this stock. It is in the Basics Material sector and is a Chemical Stock. It is going to split on March 18, 2014 for holders of the stock on February 28, 2014. So yes you still have time to get in and buy prior to February 28, 2014. Also, WLK is going to increase dividends and pay a cash dividend prior to the split date.
I always hope you enjoy my blog entries regarding the stock market. I invite you to be come a follower of my block and check it for updates and read my postings.
Sincerely
Gus S.
Disclaimer:
Make sure to review any information found on this blog site with your personal financial advisor before making any decisions. I am providing general information and not financial advise. I am not a licensed stockbroker or financial advisor.
