Despite great up and down movements caused by both bears and bulls, 2015 ended along the notes that were constant in the second part of the year. 2016 started strongly, and by the end of February, we already have some stocks you could look to add to your portfolio:
1. Aerospace/Defense stocks
With the entire world being involved in the war against ISIS, defense budgets are being increase almost everywhere. This leads to better-than-expected returns for U.S. companies, who not only have to produce more products and new technology, but also have a lot more states to sell them too. The defense sector is our pick for the best performing sector in the market in 2016.
2. Intel
Technology stocks will always be under the highlights, but Intel is not your modern, start-up like stock. It has been here for a good time, and despite the 5, 84% loss in 2015 which was mainly due to the decrease in PC demand, is now considered a bargain stock and could see a very good growth in 2016. Most of this growth will be owed to the fact that Intel is playing hard on the smartphone market, introducing a new, advanced chip.
3. Apple
While this may seem counter-intuitive, Apple has very good fundamentals and close to zero debt. Due to the world exiting recession and entering deflation, consumption in emerging markets will only continue to grow. These regions will demonstrate a very strong appetite for Apple products in the next several years, so buying the stock now can produce good gains.
These ideas can are just the tip of a long list of stocks which are considered good buys in 2016. Remember to keep your portfolio carefully balanced and check it at least once every 3 months. You can also try holding a good number of dividend stocks and blue-chip stocks as counter-balance for these ideas and also invest in more risky ones, like up-and-running companies for emerging markets. That’s the beauty of the stock market – the multitude of options you have at your fingertips, every day.