What to invest in 2019? What to put money in 2019 on the background of a new wave of the global financial crisis. In this article, we will try to analyze the US economic sectors and form a portfolio of promising stocks for 2019.
2018 ended a significant correction in the stock market. It was rich in forecasts and events. This article will summarize the economic sectors and select promising US stocks for investment in 2019.
Sectors in 2018
Let us look at the position of the US stock market sectors in December 2018.
At the end of the year, the stock market moves down, and almost all sectors show a negative trend. But most of all in 2018 technology sector fell. There is a reason for this; a policy of quantitative easing (QE) was implemented in the USA, which allowed investors to pour money into technology companies. Globalization also took place lately, when large companies bought small ones, which contributed to their growth and market growth.
US stock market risks
A large number of companies work on credit funds, and this can be a strong negative factor. On the growth of the market, consumption grows, with the result that companies have the opportunity to make a profit and give loans. But in a period of slowing down or a fall in the market, it is difficult for companies to repay loans, this leads to an accelerating movement down both individual companies and the market as a whole.
Expectations for 2019 in the US and world economy markets
Considering the economy of the United States as a whole, you can see that all is well. Unemployment is falling, and the world economy is growing. There is a reason to believe that growth will continue in 2019, but at a slower pace.
It is worth paying attention to the possibility of negative factors. There are two of them, China’s economy and the impact of US policy on the world market.
– China does not disclose the bulk of information about its domestic market. The unexpected and substantial news that was hidden behind the “curtain” may affect the global market. Another factor is the growing number of companies that cannot service their debts. Their number is continuously growing and is now about 35-40% of the total number of companies.
– The United States is actively pursuing a policy of quantitative easing, returning money, manufacturing, and jobs to the country. In one place, it arrives, and in another, it decreases. The withdrawal of resources for states and sectors will result in a decrease in economic indicators, a reduction in the economy as a whole, and a decrease in demand for American goods.
Sectors promising for investment
Let us consider the sectors, investment in equities of which are promising in 2019.
Technology sector. Even though it has the most significant fall this year, there are a lot of companies in it that have shown considerable growth over the year — for example, MCFT, ADBE, CSCO.
– Service sector. It is aimed primarily at providing services for consumers. This segment is always in demand. Subscription models that are beginning to be used by companies in the market, such as NFLX, are becoming attractive to investors. Briefly about subscription technology: first there is a capture of the audience, at the same time dumping of prices, and then a rise in the cost of the subscription and, as a result, an increase in profits. The company seeks to become necessary for the consumer to cover more areas.
– Healthcare sector. It alone in 2018 showed a slight increase among all industries. The population is aging, and most of the money is concentrated in the elderly. It is one of the reasons why this sector should also pay close attention.
– Consumer, industrial, and financial goods sector. In these sectors, you can find companies worthy of investment.
What stocks to buy in 2019 ?!
For a start, it is worth noting similar falls on stock charts. It is because in moments of increased market volatility, the correlation increases, and individual shares crash for SPY. In those actions, examples of which will be given, everything is okay, sales are growing, profits are multiplying, they have a precise and predictable business model.
NFLX (Netflix) is an Internet television network that sells subscriptions to entertainment content. As of January 28, 2018, there were about 118 million subscribers in 190 countries.
ADBE (Adobe Inc.) is a multi-industry company engaged in software development, which provides tools and solutions with which it is possible to make, post, advertise and monetize your content and sells its products by subscription.
VEEV (Veeva Systems Inc.) provides cloud-based software for managing customer relationship processes, processing data, leading research, and development functions. The client receives a full range of solutions for their business.
FB (Facebook) is the company produces various products for connecting and sharing, communicating through mobile devices, PCs, and other devices. It includes Facebook, Instagram, WhatsApp. In December 2017, the company had 1.4 billion active daily users, with sales of 51.9 B $, the company earns 21.8 B $ per year.
Shares, sectors, and directions from which we are waiting for the “boom” in 2019
To begin with, let us summarize them. These are young and still cheap IPOs that come up to the exit line.
And now the direction and the sector where to invest money:
– New technologies, including those related to blockchain.
“After a wave of legalization, good prospects are linked to the marijuana market.”
– Health sector.
Well, what to do with this information next?
Based on this information, you can:
1) Build your investment portfolio, buy these stocks and hold, the classic buy & hold strategy.
2) Trade promising stocks or stocks in promising sectors for various short-term strategies. One of them is NYSE Earnings, which is trading quarterly reports.
About the author
Melisa Marzett is a freelance writer who works with different types of content. Currently, she is working for http://www.essay-editor.net traveling throughout the world.