Which Stocks Should You Buyin 2018?
2017 was a positive year for all the main US markets,with the Nasdaq adding more than 26% to its value, the S&P 500 gaining more than 18% and the Dow Jones rising by more than 24%. Overall, Wall Street delivered its strongest performance in 4 years and traders around the world are anticipating further increases moving forward. The year has already got off to a great start with new record highs for the major American indices. The question now on everybody’s lips is: which stocks should you buyin 2018?
Since the American Federal Reserve (Fed) is widely expected to continue increasing interest rates as part of its strategy of fullnormalisation of its monetary policy, USbank stocks could represent sound investments, as they are likely improve their results on the back of strong economic growth. According to Morgan Stanley’s eighth annual "vintage value" list of stock to own this year, Bank of America, Citigroup and Wells Fargo are among the best financials to get in on.
Another industry that has been on fire over the past few years is the tech sector. According to Forbes, there are 3 key tech trends to follow in 2018 that should have a broad impact on stock prices:
- The pendulum of cybersecurity will shift from confidentiality to integrity and availability
- The rise ofmachine learning
- Blockchain to the forefront
Some Wall Street analysts are somewhat sceptical about the potential of tech stocks to repeat their 2017 performances, when returns were almost twice as high as for the S&P500. Tech has now been outperforming the rest of the US economy for 4 consecutive years.President Trump’s programme of tax reforms is likely to have a major impact on portfolio holdings, but J.P. Morgan acknowledges that fundamental drivers for technology companies are still strong. The renowned financial services company remains mostly bullish on the five FAANG stocks - Facebook Inc., Apple Inc., Amazon.com Inc., Netflix Inc. and Google parent Alphabet Inc.
Banks and tech companies are among the mostfavoured investments for many American investment banks in 2018. According to Fidelity, strong picks could also be found in the healthcare and consumer discretionary sectors.You can trade a wide range of stocks for companies in these industries by using onlinestock trading platforms.The broker Trade360.com offers many opportunities on high-value companies with excellent growth potentialon itsmarket-leading platform, which features an array of advanced trading tools and money management tools.