July 19, 2011 -
There are three sectors that are predictably going to show growth in the third and fourth quarters of 2011. Basic resources, health care, and start-ups.
As the sector has already bottomed out, logically the only way it can go is up. It’s been undervalued for a lengthy period of time, and there are now more consumers with disposable incomes, particularly in newly industrialized countries. Demand will grow for basic resources as they are limited and subject to a maximum production output level and we can conclude they will go up in longer term. As per capita incomes increase, more demand is put on these non-renewable pushing prices up faster than previous historical records.
The health care sector is continuously growing and generally performs well throughout the year as the diversity of the sector and shear volume of cash cows making it the penny stock sector to keep an eye on in the upcoming months. Health care giants are making big volumne one-use medical products and generic drugs which are not as affected by recession as the other sectors. These companies values should rise and fall in line with the CPI.
Technology is a hot sector now as there are many developing products and brands establishing to compete with brands produced by mega companies. Typically, there is a buy out and takeover of the leading edge tech sector company by the larger mega company. They seek to protect their product or gain more market share with a newer, improved design. The investor seeking to make the money should be pursuing these leading tech sectors, and when not bought out by the large companies, will end up on the exchange markets.