One of the most important activities that you should do in your life is to make some investments. This is where you utilize an amount of capital to buy some assets with the vision that they will increase in value and net you a profit. There are many types of assets which you can purchase and the most common one is shares. Also known as stocks, these are instruments that represent a piece of a company. Some places in the world are well known as centers for the trading of stocks. One of these is Wall Street in New York, USA. It is actually referred to as the center of global finance. Stocks are a lucrative investment option. Many people have made their fortunes by trading shares and some of them have even become billionaires. Do you trade shares? You can get closer to your fortune this year. Here are 18 trends and stocks to watch for .
Stocks to watch out for
There are some companies that are expected to perform quite well in the new year. Their stock is expected to increase in value and give investors a handsome profit. Read on to learn which stocks you should invest in this year.
General Motors (GM)
This is a car manufacturing company that is based in the USA. It has made visible efforts in adopting the latest technology in electrically powered and autonomous cars. Due to advances in engineering, future cars are expected to run on the more affordable resource of electricity. Moreover, autonomous, driverless cars are being seen as the future of motoring. General Motors has its hands in both pies. The company recently invested $500 million in Lyft. This is a company that handles commercial ride-sharing and GM hopes to implement autonomous driving in this sector. Also, GM bought Cruise Automation. This is a company that creates the software which is used for autonomous cars. Currently, GM has manufactured the Bolt. This is a long range, electric, autonomous car. It is able to provide this car for ride sharing and personal use. As a matter of fact, GM has the financial power and technology to be the leading company in the field of electric cars, beating out the favorite, Tesla Motors. Therefore, GM stock is expected to perform quite well .
ONE Gas (OGS)
Natural gas has emerged as a popular and lucrative source of energy for modern households. Companies utilize modern processes such as horizontal drilling and hydraulic fracturing to find large pockets of natural gas for mining. One of the companies that does this is ONE Gas Inc. This company delivers natural gas to homes, commercial establishments and industrial ones too in the areas of Kansas, Texas and Oklahoma. This is a very large and profitable footprint. Stock in natural gas companies is generally immune to any swings in the market. Therefore, you can gain a long term benefit by investing in ONE Gas Inc stock this year.
USG Corporation (USG)
This is a company that you need to invest in this year. This is because USG Corporation is one of the foremost companies in the construction of green buildings. It is one of the 14 companies in this industry that possesses a Green Building Policy. This means that USG Corporation utilizes the latest technologies and principles of design to construct its buildings. Thanks to this, USG Corporation enjoys steady growth year in and year out.
Suggested Reading : 10 Ideas From Peter H. Diamandis That Will Make You Think Big
Independence Realty Trust (IRT)
In 2016, there was a major run up in interest rates. It caused a rout in Real Estate Investment Trusts (REITs). Those that deal in apartments were the hardest hit. Many of them have their stock performing 20% below their annual high. However, IRT was able to survive this negative season. The company was able to maintain a dividend that gives it a unique position in the market. IRT is currently able to perform at a yield of 8%. This is more than ten times the yield of its closest competitor in the apartment REIT business. IRT is performing so well that even if it dropped its dividends to a payout ratio that is more in line with its competitors, the company would still be 25% higher than them all. Thus, it is a good stock to buy .
This company recently went public in a successful IPO. It is a producer of water infrastructure products and demand for its products should soar in the next few years. The company makes revenues of up to 1 billion annually. Moreover, it recently constructed a platform to increase their products for water infrastructure. In addition to that, it is expected to announce some acquisitions in the first six months of 2017. Thus, Forterra is definitely a hot stock to purchase.
Dycom Industries (DY)
Companies that operate in the industry of telecommunications are known for their profitability. One of these companies is Dycom Industries. This one of the largest contractors of special telecommunications infrastructures such as cables and cell towers. This contractor will be a beneficiary of a long-term trend initiated by the US government. As a matter of fact, the US government is in the middle of a huge fiber-optic construction and installation project. This is because of the demand for super-fast Internet speed among the citizens as well as the increase in the consumption of data. Companies such as Dycom Industries will be tasked to complete this task. Therefore, the profits for this company are literally guaranteed over the next few years. Thus, DY stock is reliable and profitable.
Information Technology (IT) behemoth IBM showed signs of recovering in the stock market in 2016. The sleeping giant awoke with a slew of new technologies that it is focusing on. It is investing heavily in Cloud technology, Artificial Intelligence (AI), cyber security as well as mobility. The company has made a massive transformation and gained enough momentum in 2016 that will carry it right into 2017. Thus, its revenues and profits are all but guaranteed over the next fiscal year. IBM is a good stock to purchase.
Suggested Reading : 10 Lessons From Ray Dalio That Will Make You a Better Investor
Broadcom Limited (AVGO)
This company is one of the top providers of wireless technology in the USA. It has been regarded and recommended by investment advisers. Moreover, analysts from banks such as Deutsche Bank indicate that it is a reliable stock to purchase. Currently, the company is trading at $180 per share. It is expected to rise in value to $225 per share. This is due to diligent management and cost reduction efforts in the company. It is one of the hot stocks of 2017.
Envision Health Care (EVHC)
This a company in the healthcare sector. They specialize in outpatient services and general medical care. Moreover, the company is fresh off a merger with AmSurg. This works to improve its capital and flexibility. Through this merger, Envision Health Care (EVHC) is in a much stronger position for 2017. Its stock is currently trading at $65 but is expected to rise to $87 . Thus, it is a great stock to watch in this new year.
State Street Corp. (STT)
The financial sector is expected to rise . The Dow has indicated a rise of 20,000 points and the future of finance looks bright. Therefore, companies that operate in this sector such as State Street Corporation are bound to perform well in the new year. The company is practicing cost cutting activities by trimming expenses. Moreover, they have dramatically increased their customer assets. Thus, they expect to get more fees. Their stock is currently trading at $79 by will rise to $89. Thus, any investment in their stock will result in a good turnover.
Trends to watch out for
There are some trends which are expected to catch on quite well in the new year. They will have a significant impact on the performance of stocks and the market in general. Read on to learn which trends you should watch out for this year.
It is time to bet on emerging markets
An interesting observation was made in 2016. The stock markets in emerging economies performed better than those in developed countries. According to analysts, the S&P 500 increased 4%, Japan's Nikkei went down 9% and the Euronext posted an increase of only 2%. These are all markets in developed economies. On the other hand, markets in developing economies posted double digit growth. Brazil's Bovespa posted an increase of 45%. The MICEX in Russia posted a 12% increase while frontier markets in South America posted tremendous increase too. Thus, if you are looking to make cross border investment, then you should look to these markets since they have a positive trend .
The commodities markets are making a full recovery
Commodities such as oil, metals and precious stones posted some shaky growth in 2016. Investors were wary of them throughout the year. However, , they are bound to look up. This is according to the observations of Jim Rogers. He is a legendary investor in commodities. He, along with a number of other investors have observed that the overall prices of oil and such in emerging markets will rise this year. Thus, if you are looking to invest in commodities, this is the trend to follow.
Infrastructure stocks are very promising
In his acceptance speech, president elect Donald Trump indicated that he intends to make a lot of investment in infrastructure. This is an effort that he intends to perform so as to create some jobs. How he will do this is yet to be seen. However, the stock market took his words literally and there was a rally of industrial companies towards the end of 2016. Therefore, you can make an investment in these stocks and expect a good return.
Suggested Reading : 10 Eye Opening Lessons We Learned From Carl Icahn on Wealth
The bubble in China's markets is overrated
In the year 2015, the Chinese stock market saw a huge fall. Once this happened, there was excited talk about a global crisis in finances and also a drop in the Dow Jones Industrial Average (DJIA). Moreover, there was talk of a massive bubble developing in China and the real estate market collapsing. However, all these observations did not come to pass. Thus, the talk of a continued bubble in this country is simply overrated and even if it is still shaky, the Chinese markets are still good for investment.
The IMF indicates the emerging markets have potential
The activity of the International Monetary Fund (IMF) is a major guideline for investors in global finance markets. It marked a worldwide forecast for economic growth to 3.1% for 2016 and 3.4% for the year 2017. The IMF analyzes economic performance by checking the activity which is happening in developed countries. The low percentages posted by the IMF are a sign of the slow growth in these economies. Thus, emerging markets are still unexplored territory. They offer an attractive investment area for 2017. Looking towards them in the new year is a good trend to follow.
Corporate cash asset repatriation could mean good returns for shareholders
There has been talk of reform in the corporate tax structure. President elect Donald Trump may actually follow through with it. This could mean rewards for shareholders. This is because companies that have cash assets parked overseas would be required to repatriate it back to the USA. This capital would have to be placed as buybacks and investor dividends. This trend is bound to cause quite a lot of excitement .
Keep an eye on biotech firms
In the new year, investors should keep a keen eye on biotechnology firms. Despite sluggish performance in the first quarter of 2016, they picked up and consolidated their strengths to finish off strong. Also, biotechnology firms are well known to be strong performers in the markets. Thus, they are capable of sudden massive growth. Their charts are currently indicating that there will be a big move happening in biotechnology firms . The stocks of these companies are a good option for keen investors and this is a trend to watch.
Suggested Reading : 30 Disruptive Technologies and Ideas That Will Transform Industries
Russian art will be a good investment option
Next year, it will be exactly 100 years since the October Revolution of 1917. Thus, the prices of Russian art will climb significantly. As a matter of fact, the prices of this art are currently going up. Renown auction house Sotheby's made record sales of Russian art from Alexander Rodchenko and Ilya Chashnik. Fans of the Russian art movement are excited about the expected rise. Thus, you should keep an eye on this trend so as to succeed as an investor .
The Important Take Away
It is generally accepted that the financial sector is one of the most exciting in the world of capitalism. To excel in this field, you should stay ahead of the curve in terms of information. When a trend emerges or a stock begins to perform, you should take advantage for the sake of profit. The stocks to watch and the trends to follow are indicated above. You can use them to guarantee profits and growth in your investment portfolio .