Which sector is going to be hot in 2011? If history is any clue, it won’t be what was hot in 2010. In fact, a look back through history tells us the leading groups in one year often become disappointments the next. Moreover, lagging sectors in one particular year often blaze bullish trails in the next. Technology is one such example. Though the sector led the way in 2009 with a whopping +57% jump — and attracted a lot of buyers based on that strength — these stocks have actually scored in the bottom half of all… Read More

Which sector is going to be hot in 2011? If history is any clue, it won’t be what was hot in 2010. In fact, a look back through history tells us the leading groups in one year often become disappointments the next. Moreover, lagging sectors in one particular year often blaze bullish trails in the next. Technology is one such example. Though the sector led the way in 2009 with a whopping +57% jump — and attracted a lot of buyers based on that strength — these stocks have actually scored in the bottom half of all sectors during 2010, trailing the market by more than a little. Before identifying what’s waiting in the wings for 2011 though, let’s just walk through the industry ebb and flow for 2010 — using iShares’ major sector exchange-traded funds (ETFs) as a proxy to verify the premise. For the year so far, while basic materials haven’t surprised anyone as a leading group, it has not actually been the hottest sector of 2010. That title belongs to consumer services, up +18% year-to-date. Basic materials stocks are up an average of +14% for the year,… Read More

It’s no surprise when I started my Game-Changing Stocks service that my publisher and I picked the name we did. For me, this is what it’s all about — not market timing, value investing, vulture investing or swing trading; it’s about finding the next… Read More

Most of the stuff that’s on sale this time of year isn’t worth the plastic it’s wrapped in. Yet almost everyone winds up dropping hundreds or even thousands of dollars on “holiday bargains” that provide a quick thrill and then are just as quickly forgotten. A better use for your… Read More

In the final stages of the dot-com boom, a number of stocks tacked on stunning gains day after day, in what’s known as a “melt-up.” These stocks were no longer logically valued on any sort of fundamental basis, and instead were squarely in the hands of momentum investors that know… Read More

As should be no surprise, there has been a wealth explosion in China. From 2003 to 2009, private wealth has grown at a compound annual rate of +24.8%. Even during the global financial crisis of 2008, private wealth grew by +8.3%. The rest of the world saw an -11.7% plunge. Read More

On average, they’re yielding 7.5%. That’s more than three times the yield of the S&P 500. Try getting that amount from a money market or savings account.   But that’s not the half of it. In tandem with those high yields, the capital gains have… Read More

China hogs most of the headlines these days, given it represents an extremely compelling growth market for investors. I recently explained why investing in other countries can make more sense, naming India as an example of a country that may have more compelling long-term prospects for investors. But it doesn’t… Read More

The direction of the stock market in 2011 could well be determined in the next few months, as I noted last week. At the time, I suggested you tune in to Tuesday’s economic reports for the next read on the economy‘s pulse. With these reports hitting the tape, let’s see what the economy is telling us: Manufacturing heats up A monthly survey of business activity in Chicago (PMI) is flashing green. The index came in at 62.5, nicely ahead of forecasts of 60.0. (Any reading above 50.0 signals expansion in… Read More

The direction of the stock market in 2011 could well be determined in the next few months, as I noted last week. At the time, I suggested you tune in to Tuesday’s economic reports for the next read on the economy‘s pulse. With these reports hitting the tape, let’s see what the economy is telling us: Manufacturing heats up A monthly survey of business activity in Chicago (PMI) is flashing green. The index came in at 62.5, nicely ahead of forecasts of 60.0. (Any reading above 50.0 signals expansion in the factory sector). And the numbers behind the big number look even better. A gauge of new orders rose from 65.0 in October to 67.2 in November, and inventories fell sequentially from 54.9 to 48.4. That sub-50 reading means that inventories may be getting too lean, so we may be on the cusp of another inventory rebuilding cycle. It also means that economists are likely to raise their PMI forecasts for the next few months. Investors may want to see this level sustained for a few more months before calling it a trend. The… Read More

While staying focused on your best long-term ideas, it also helps to boost your portfolio by looking for stocks with a chance for quick moderate gains. And in the tech sector, we’ve seen all kinds of headline-induced winners in the past six months, thanks to M&A activity, robust quarterly results… Read More

It’s become a bit of a holiday tradition. Each year in October, I step back and take a long hard look at where I think the market will be heading for the next year. It’s easy to get caught up in the trivial aspects of day-to-day market… Read More