What are the Sectors/Industries to Watch in 2017?

While we can’t predict the future, we love to hear about what your guesses are – especially when it comes to what to watch in the stock market.  That’s why this week, we’re featuring you – top app users from our newsletter and our favorite social media fans who shared with us some of the things they are looking for in the stock market in 2017.  What would you add to the list?


  

Consumer Staples

Sector strategy in the markets in 2017 is actually quite tough after the big rotation of the second half of 2016 boosted the financial and cyclical areas. However one space does stand out and that is the consumer staples. Now I know what you are all thinking: investors hold many of these ‘high quality, dividend heavy’ stocks already. Of course you would be correct but, importantly, the rotation of the last six months or so has led to a marked underperformance. Two factors will lead to better times in 2017 for this part of the market. The first is that – irrespective of your political persuasion – there will be ups and downs in investor certainty during 2017 and this will manifest itself in greater market volatility than the VIX index is currently signalling. That’s solid news for the more defensive staples names. Second I believe the US dollar will fade against many other global currencies during the year and in this environment you want overseas earnings…and staples have them a-plenty. A few names of particular interest? Well try Philip Morris International (PM) and Anheuser-Busch InBev (BUD) for starters.< - Chris Bailey, Founder of Financial Orbit

  

Healthcare


You should consider health industry because of the bad yield in 2016 and the age of the population. The oil industry is going rise with Trump. US stocks are a good opportunity for Canadians because of the possibly rise of the rates in USA.
@USStockInvestor

  

Storage Tech


Self storage facilities and technology related to AI and VR. Nvidia may be peaky here but no real contender exists.
– Brian Crum, InvestWithBrion.com
– @BrionCrum

  

Real Estate


“I love real estate, but that is because it is my life. I flip houses, buy rentals, am a real estate agent, and write about real estate on Investfourmore.com. I stopped buying residential rentals where I live (Colorado), because prices are so high here. I really think the best way to make money investing in real estate is cash flow from rentals. However, you cannot cash flow in every market which makes it tough. I have switched to commercial real estate in my area because the returns are higher and there is less demand. I have also thought about investing in rentals in other states with lower prices and better returns like Florida. Even though prices are sky high in many markets I love real estate because of the tax advantages, the cash flow that comes in every month, being able to build instant equity by buying below market value, and as a hedge against inflation since rents and prices rise. Not to mention debt can be an awesome tool with real estate if used right. I love having total control of my investment, and not having to worry about others managing my money right.”
– Mark Ferguson, Creator at Investfourmore.com

  

Diversification


I wouldn’t narrow my 2017 investing to one industry. So much is changing in every arena so why only look at one? My strategy is an updated version on Peter Lynch’s. I use social data to uncover trends and factor them into my analysis. Today’s social information is happening at a rapid pace online. I use sites like TickerTags and Google Trends to confirm/disprove any investing thesis I have.
Laura Casey, Investment Analyst at TickerTags

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Written by Andy Hayes

is a lifestyle expert and runs his own online magazine, Plum Deluxe. Andy is based in Portland, Oregon.

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