As many investors clear out their watch list and sell their gains and losses for 2012, it's time to look forward. The technology sector had its ups and downs, going with certain trends of the year, while Apple ended the year on a disappointing fall. Still Apple remains a stock to watch in 2013. The energy sector fell as economic data grew and gas prices fell, a sign of a recovering economy. But how much will it recover? The fiscal cliff holds the keys to the success or failure of the markets in the beginning of next year. January looks to be a dim month with the gridlock in Washington. And even if a deal gets done how big of a deal will it be? Is it enough to make such an impact on the markets for the long run? The retailers were let down with a less than expected holiday season, and that may hurt the high end retailers. How much will Americans cut back on in 2013? With so many questions in sight for next year we have sorted it all out for you.
The technology sector has always been something to bank on in recent years and with such a trendy market and wanting buyers will it keep it's hot streak? The answer will be yes but what stocks should you buy? Apple seemed to dominate the market with its line of dominate and trendy devices, but many companies have cut into their market share. Microsoft, Google, Samsung, Motorola, and others have all cut into the smartphone and tablet markets. Making it tougher for Apple to pile up such enormous profit. Moving jobs to America might help the economy a little bit but then work costs will rise, making it even tougher for Apple to make a profit. So then what do you bank on? Well Apple might be coming out with their TV which is sure to attract customers, but at what price? How successful can it be? If you want to bank on a tech stock in 2013 you might want to go with companies that can dominate their market. Intel has dominated the chip market, but will it be able to turn around in 2013? Intel is down almost 30% year to date and with less demand for computers and laptops its future is in question. But with a 4% yield on its dividend I wouldn't count it out just yet for 2013. It has one of the highest dividends for a tech stock in the market. That attracts investors, plus if it can turn some more revenue in 2013 it might be a good pick. Cisco also should make a huge comeback. Cisco is developing a cloud system for its technology services and has been spending tons of money marketing on it. If it makes those expectations it will be huge for the stock. Google might be a good stock in 2013 because of its new smartphone coming out, as well as Google Fiber growing. The technology sector in general can see growth in 2013, but choose wisely in it since their is stocks that could go wrong.
Depending on how the fiscal cliff situation goes the financial sector could also have a big 2013. The fiscal cliff seems to be an iron wall preventing the markets from reaching their potential. If we do go over the cliff (which looks likely now) the markets could have a real shakeup and may not be able to get over consistent gains. The beginning of 2013 could be a rough start if the we do go over the cliff. Although if the markets do break that iron wall, the financial sector which showed good signs in 2012, could have even bigger strides in 2013. Citigroup and Bank of America seem to lead the charge and look to continue their big runs in 2013. Although depending on how bad the fiscal cliff hurts us in 2013, the financial sector could feel it too.
Retailers which saw a weak holiday season in 2012 will look to rebound in 2013, although the fiscal cliff will crush the retailers and high end shops. Investing in the retail sector is still not a terrible idea. You have to do your research and be smart enough to pick the right stocks in order gain. High end retailers will get hit in 2013 if the fiscal cliff is as bad as we think. Our fiscal cliff proof stocks would have to be Dollar General and Target. Shops that target middle income to lower income customers that will attract them to these stores if we do go over the cliff and their taxes get hiked. Also we believe that the biotech sector could have a good year with Obama's medicare plans, it shouldn't be effected too much on the fiscal cliff.
2013 will surely hold some questions and scratch some heads, but depending on how we fix this spending, budget, and taxes all might not be bad. We can still grow our economy if we get this deal done. Although if we don't, markets could feel it. The beginning of 2013 could be rough if we go over the fiscal cliff. It'll effect consumers all the way to the job reports, and small business. Keep your eyes peeled and if we get a deal done, the stocks will grow! If we don't this might be an interesting year.
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