Top

Live After Quit

Go for the Gold! 3 Sectors That Are Booming in This Year’s End Rally

Investment strategies vary from investor to investor, but one thing they have in common is the focus on risk-reward ratio. The goal is to maximize profits and minimize exposure to downside risk. In order to achieve this, investors look for equity sectors that are strong, either due to positive market conditions or underlying skillful actions taken by company insiders. This is increasingly the case in times of Bullish trends, where equity trends point upward and businesses experience increased sales and profits. A Bullish trend is an upward movement in prices, creating a buyer’s market and prompting investors to seek value and momentum in equity and bond markets. Identifying such sectors or stocks at the early stage is an essential part of successful financial investing. At the present time, equities are enjoying a strong Bullish trend due to the positive economic outlook, which makes now an opportune time for value and momentum investment. There are a handful of key sectors which investors should take into consideration for the closing quarter of the year. As 2020 draws to a close, the economy is likely to experience a period of strong economic growth, propelled by rising investment in areas such as technology, healthcare, e-commerce, and entertainment. Several sectors have already shown impressive returns, notable entertainment, consumer discretionary, and automotive. First and foremost, the technology sector has seen strong performance this year, driven by the spread of digitalization and the adoption of disruptive technologies such as cloud computing and big data. This has created new opportunities for investors looking to invest in tech stocks. Companies such as Amazon, Alphabet, Microsoft, and Apple have been beneficiaries of this trend and have seen their market capitalization expand. These stocks are attractive to Bulls, due to their strong balance sheets, technical know-how and scalability. Second, the healthcare sector is likely to gain from increased demand for medical devices and treatments related to the pandemic. Companies such as Johnson & Johnson, Merck, and Novo Nordisk are expected to report strong earnings and experience buoyancy in their share prices. In addition, the pharmaceutical space is also likely to experience significant upside, as the demand for drugs and vaccines is expected to rise in the near future. Finally, consumer discretionary too is likely to receive a major boost from the Bull trend. Companies such as Amazon, Walmart, and Target are expected to benefit from increased consumer spending, as people take advantage of the low interest rate environment. Additionally, discretionary stocks such as Vodafone, Media, and Ab-InBev are likely to witness attractive returns as people shift towards digital entertainment and choose premium products. Given these Bullish trends and the increasingly attractive markets, investors must continue to remain vigilant and build their portolio of investments with the year-end in mind. By focusing on potential value and momentum plays in these sectors, investors can capture upside and reduce their exposure to downside risk.