Do you have a favorite stock sector you like most to invest in and why?
I'm curious about others views on why they invest in a particular stock sector and why they think that's the place to put their money. Your reasoning as to why you believe this will be an area of growth in the months and years to come would be very helpful.
By a sector I mean things like utilities, health care, technology, etc. Or more specifically a subcategory of a stock sector that you find to be on the verge of strong growth in stock values.
Please don't use my question as an opportunity to scold, rant, or ridicule what I'm asking. I'll ignore you so that will be a total waste of your time.
I'm simply curious as to others views in this area.
- FabienneLv 69 years agoFavorite Answer
Oil / Gas
- 9 years ago
It depends. Appreciation pace of stocks differs from sector to others. Some companies that pay high dividends to investors don't have big appreciation/depreciation unless there is big news.
For example, most companies in the utility sector and energy sector pay high dividends. Mostly in the range of 3% - 6% and even higher.
So, if you buy stocks of such a company, you will receive this amount of dividend every year.
Examples: Chevron, Kinder Morgan, ...etc
But, in the technology sector, most companies don't give back the cash to investors. They prefer to use the Cash of acquisitions and expansions. Those companies under this sector have their stocks move in a very volatile way, and sensitive to news. Example, if "Google" anounces good profits, the stock will move up 10% instantly.
So, the juice is, if you have confidence in the technology company, and you feel that it has a good chances to generate increasing profits in the future, you can just buy the stock cheap, and wait fot some big appreciation.
Otherwise, you can simply buy stocks in energy or utility companies, and get paid big dividends and relax. The stock will move up & down depends on the economy condition just like any other company, but again, you will receive dividend.
The only negative side, is that the stock may face big problem and go down big time just like the effect on BP stock when the spill in Gulf of Mexico happened.
But such big disasters are rare, and have small chances to happen.Source(s): Investor
- Anonymous9 years ago
Currently, my largest allocations are to consumer stables in which I include certain stocks not normally included in those---PEP, KO, and MCD. Next up is oil & natural gas although I have recently cut back in that sector some. A somewhat distant 3rd is medical. Other sectors are just odds and ends. I am in a somewhat defensive mood currently. Folks are going to need the stables no matter what. They will also need oil and gas no matter what. One might also argue that they will need medical but a problem with that category is that the government dictates prices in many cases. Utilities have done well and of course we all do need utilities but it is not a sector I am especially enthused about. Sort of have my eye on POT. The fact that it is based on the Canadian dollar rather than the US dollar is somewhat appealing and also the fact that people got to eat. Just sort of waiting for my puts to trigger. If they don't I am a patient person. Will just sell some more.
- Common SenseLv 79 years ago
I am convinced that the "cloud" is the place to be. Cloud computing is similar to the breakout of the internet stocks in the 1990's. The ETF for this is: SKY
Cloud stocks I own are;
I also own the T Rowe Price "Technology Fund".