HOT SECTORS AND TOPICS FOR 2013

Promising Sectors for 2013

I apologize for not updating this Blog in a long time..I Still see quite Good traffic to my Blog with such long break in threads, i relate to my previous threads on some great companies who are still one of the Hottest stocks in 2013 such Netflix (NFLX) and Baidu (BIDU) which has given the investors double digit returns if picked up during November Election fiasco. For stats Bidu has returned around 30 % and NFLX has returned around 60% due to the recent earnings burst. For Institutional investors timing is immaterial since they cost average highs and lows all through the year, while Hedge funds seek out short term opportunities 

on both long and Short positions in the same sector.

For small investors like us its i imperative that we time the Market right and exit as quickly as you see double digit returns on paper. Not only does timing helps make us good profits but sector rotation and Frequent portfolio balancing is quite critical to sustain the market swings or survive sudden crashes. 

Let us look at some promising sectors for this year. I scanned through some of the Hot sectors of 2012 and surprisingly Home builders on average returned double digit profits for investors. Oil industry was stagnant as the threaten of Gulf war and instability in Middle East has ceased to be the center stage. I guess it has direct correlation  with Election opinion polls and November results towards the end of the 2012 and a Democratic President back in office. (see my early blog on Obama versus Market)

Now i see some hot topics for the  year 2013 which will drive the Markets.

• Fiscal cliff - Fancy term to describe if U.S can survive/fail the Government borrowing limits from federal Reserve and Debt ceiling.
• Syrian Unrest and Geopolitical crisis .
• Renewed Threats from North Korea
• China Standoff with Japan over disputed islands
• Cut in U.S Military Spending
• Greece,Ireland and Portugal in 2012 replaced by Spain and Italy as the center-stage of EU crisis.
• China revamping growth using its Internal demand/domestic Economy.
• Brazil and Russia going into stagflation.
• Death of Apple and Face Book shares - will Tech ever come back to rule the Wall street.

With a political stability in White house and increased focused on domestic issues, U.S Government is on war footing to patch up its Ailing economy with new world economics . What it means for the Global economy is  decreased spending from worlds Largest Economy . This will result in less production and consumables from China and Other Service based economies pointing to low GDP growth among BRIC countries .Most of the offshore money flowing back into the U.S economy (i am talking about trillions held by major U.S and European companies abroad in low income generating assets to high risk assets) will bring back more Jobs and high pay slips to the U.S economy. Recent Immigration policy will have a profound impact on the Service and Hotel sectors, Tourism and Mass migrations to Big cities.

If you put together the above in plate and you will start getting the BIG picture. Most of the stock markets will depend on regional policies and consumption. Right out of the bat sectors that comes to my mind are Domestic oil companies,Retailers and Commercial Realtor in U.S, National Banks in Europe , Cyclical ,Auto industry, Financials in BRIC nations such as India , China and Brazil. Manufacturing and Petrochemicals in Russia.

Some of the dead sectors will be Solar Power , Mining, Shipping and Aerospace. 

Do your math and preserve your Nest egg before risking it.!!!

Good Luck and Happy New year

Wizard