Where to Invest Your Money in the 2016 Stock Markets
It is that time of the year when winter is subsiding presenting opportunities for investors to analyze the markets for summer profits. Many investors are looking at guides on How to Invest Your Money in 2016: Best 10 Blue-Chip Stock Buys. The worst performers in the markets in the recent past have been oil-related stocks. Therefore, it is advisable to avoid these stocks until they fully stabilize.
However, if you are a risk-taker, you can try the oils hoping that the prices will rise later. Here is a list of the top ten best performers in the year 2016 that you can buy with a high chance of getting high returns on your investment.
1. Disney (DIS)
This stock has a current valuation of $184 billion in the market capitalization. Economists believe that the Fed will normalize interest rates at 3 percent in the next few years. However, in the next 18 months, they can raise the rates to 1%. Last August the DIS Company suffered a setback because many consumers turned from cable subscriptions to internet programming services.
However, this is advantageous to the company because Disney’s content continues to be dispersed via the new internet programming services like Netflix. Thus, the internet subscriptions have also given Disney an opportunity to leverage in the narrowcasting arena with its content remaining popular despite the change of the mode of broadcasting. Therefore, with its potential to rise in prices going into the summer of 2016, the DIS stocks are at the top of the best blue-chip buys for you.
2. Berkshire Hathaway
The company’s current market capitalization is $323 billion. Though the A shares are expensive with a single share valued at $200,000, the B shares are more affordable currently priced at $135 per share. You can easily and quickly rebalance $10,000 worth of B shares in the case of a capital loss for tax reasons as opposed to the A shares. Buffet hired some investment experts whose hedge funds management records prove a better performance than the S&P 500 index.
It is not a secret that Warren Buffet is the best and most successful investor in the stock markets. Having hand-picked a team to succeed him in his estate, you are guaranteed that much caution and searching was done when picking his team. This team is set to outdo the S&P 500 index over time making the Berkshire Hathaway stocks a wise choice to invest on currently.
3. J.P Morgan Chase (JPM)
JPM has a current market capitalization of $240 billion. Currently, the stocks market is in turmoil. There is an economic slowdown in China; the Federal Reserve maintained its low-interest rates and the oil prices are still significantly low. In the current environment of the ‘rising rates’, the financial sector is set to gain rapidly in revenue and value. Thus, the confidence instilled in the financial sector will increase demand for JPM stocks. Therefore, the prices will rise shortly making this stock a worthy choice for you to invest.
The rest of the top 10 best chips are an excellent opportunity to invest on because their prices are quite low. Moreover, they have the structures to survive rate hikes and the strengthening US dollar.
4. GE (GE)
GE has a current market capitalization of $307 billion. It can survive through the Fed rate hike and will benefit from the infrastructural and technological developments set to influence the US economy in the next five to ten years. GE will be at the epicenter of all these investment super cycles guaranteeing an increase in its share prices exponentially.
5. Danaher (DHR)
The company is currently valued at $65 billion in the market capitalization. It was founded as a manufacturer of bolts and nuts but has expanded into other sectors of science and technology. The oil and energy prices dipped due to a reduced demand because of the economic slowdown in China. The new Danaher is expected to diversify its operations and split into high-tech and industrial healthcare companies later in 2016. DHR has lesser exposure to the energy sector which has made it perform well despite the volatile Chinese economic market slowdown.
6. Alkermes (ALKS)
The company has a market capitalization value of $11 billion and expects to have high returns their drug ALKS 5461 that will treat Major Depressive Disorder. Moreover, they have more major medicines in the pipeline that they continue to develop. Their continuous success in development and production of major drugs provides them with finances to continue with all their pipeline ventures. The production of two major drugs set for release in 2016 will increase their stock prices significantly.
7. BlackRock (BLK)
This company has a market capitalization value of $56 billion. It has a price-to-book ratio of 1.95. Their price-to-earnings ratio is set at 17.2 for the year 2016 which is higher than its five-year average by 10%. Additionally, their earnings per share stand at 19.45 which is better than JP Morgan Chase and Wells Fargo. The company owns iShares that is among the biggest exchange-traded fund firms in the global market. These projections make this share a worthy investment for the year 2016.
8. Apple (AAPL)
The company has a current market capitalization value of $648.2 billion. The company has decent sales and earnings growth currently. With its current product cycles and consumer trends, it seems the company is set for growth for the next three years. The company outsources production cheaply overseas and sells in the strengthening US consumer market increasing its cash flow and profit margins consistently.
9. Valero Energy
The company has a current market capitalization value of $33.5 billion. The current dips in the oil and energy prices have caused considerable impact on the company’s stock prices. Nonetheless, with strategies being put in place to stabilize the markets, the company is set to recover, and its prices will rise rapidly. This stock is an interesting buy because it is seen as an opportunity to take advantage of the current low rates for future gains. Its current stock prices and dividend growth continues to outperform other energy companies making it an attractive stock to buy in 2016.
10. IBM (IBM)
IBM has a current market capitalization value of $132.7 billion. The company under-performed in the last 18 months with decreasing revenue growth being the primary focus by investors. Nonetheless, the company began to stabilize with diversification into the mobile, cloud computing, social media, and security sectors. Though the diversification account for 27% of the company’s revenue, the rapid growth rates in these sectors are set to increase their revenue over time. Once the company realizes positive revenue growth, it will provide a high upside price potential.
