Top Sectors To Invest In For 2011

I am a little late on this one but I figured that I would post it anyway. I figure better late than never. I wanted to give my opinion on the sectors that I think will do the best for the rest of 2011. These are my picks for the 3 best sectors to invest in for this year.

Financial Stocks

I have been bullish on financial stocks since the crash of 2009 and they have not disappointed. Bank stocks have rebounded even though their earnings have not rebounded to pre 2008 levels.

Dividends should be reinstated by the major banks this year which should only add to the investing momentum. An improving employment picture is not just good for the retailers but financial stocks as well.

Oil & Gas Stocks

I like the oil and gas exploration companies as well as the integrated oil companies. The government is engaging in massive printing of money with its easy monetary policy.  I keep waiting for inflation to rear its head.

Commodities like crude oil are tied directly to the economy’s performance. Crude oil bottomed out when the United States economy and now oil is rebounding as the economy grows. Improving employment numbers equals increased demand for crude oil and petroleum products.

Specialty Retailers

A lot of retail stocks like Macy’s and Nordstrom’s are looking expensive to me. There are some large cap specialty retailers that look cheap to me in the sector and are joining my buy list. I have noticed at least a few companies trading at single digit multiples.

Retail will be one of the big winners as the United States consumer gets healthier. It has gotten more difficult to find them but there are still some good values in the sector.

Infrastructure

The economic stimulus package was nowhere near the jumpstart to the infrastructure sector that it should have been. Too few dollars were allocated to investing in our infrastructure. Although Congress is looking at cutting spending in Medicare, Medicaid, and Social Security; they will have to make some investments in the United States economy.

I think that infrastructure could be one of the winners despite the fact that analysts are not quite as bullish on the sector as they were in 2009. Companies like Terex are ratcheting up production increasing production nearly 30%.  the sector is recovering, just slower than expected.

What sectors are you most optimistic about for stock investing in 2011?

 

Comments

  1. avatar Moneycone says:

    I don’t know about the financial sector. But agree with the rest. I’ll at least wait till wikileaks reveals what it knows about BofA.

    Even though it is about BofA, these banks never work in isolation, which means it affects the entire sector.

  2. avatar 101 Centavos says:

    I’m with Moneycone – I don’t know enough about the financial industry to invest in it. I’ll stick to oil and gas for 2011.

  3. avatar krantcents says:

    My asset allocation is broader than a particular sector.

  4. I left precious metals earlier this year and put more money into oil and gas. I’m also into REITs that invest in agency paper! As long as short term rates stay below 1%, these will be paying out huge dividends. I’m hoping people start chasing the yield and driving the price up!

    • avatar Mark says:

      Robert I am an oil and gas and REIT’s fan as well. I think that there are some solid values in both sectors. The yields are incredible as well.

  5. avatar Jenna says:

    I’m really hoping green technology will grow. I’m not sure if you include that in your Infrastructure segment or not.

    • avatar Mark says:

      Green technology is the future. I like green energy ETF’s I think it’s too difficult to tell which individual stocks will be the winners in that sector.

  6. avatar bad credit says:

    I think that Green technology will reach to its high levels.

  7. I agree with the Oil and Gas sector USO is my pick for 2011.

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