Year 2008 forecast.
Following sectors performed very well in 2007, and they are expected to do well
this year too.
- engineering and construction,
- diversified metal and mining, coal and
- education services
Following sectors did not perform well in 2007 and don't expect much out of them
either. If you are look at long(2 to 5 years) horizon, the valuations are good.
- cosumer discretionary
Dollar is going down, as the national debt is going up and, I don't see any
retreat from this phenomenon. Export suppose to counter balance the trade deficit,
but that will take another 5 or more years. As, all the big companies around the
world are betting on developing world, you should be a part of that group to make
money. Look into ADRs of BRIC (- Brazil, Russia, India and China) countries or ETFs
or mutual funds that have exposure to these countries. If you like to invest only
in US stocks, look into companies with good cash flow/foreign exposure and are diversified
(e.g. GE, CMI, JEC etc)
healthcare: WAT, AET, IVGN
technology: HPQ, AKAM
- bio-tech:DNA, STJ
Alternative Energy: SPWR,
Always look into our stock list for new ideas.