2008 - Stock Market Predictions
Here are my 2008 stock market predictions:
Here are the sectors that I predict to be UP in 2008:
1) Financials (Individual picks: Citi, Merill Lynch, Goldman Sachs, Bank of America)
2) Water (Look for ETFs such as PHO, CGW to beat SP500)
3) Home Builders will start bouncing back as well
4) Materials and Agriculture ( Global demand will continue to rise the demand)
5) Telecom: (Global demand is still the reason)
6) IT Market: Beaten most of 2007, will see a bounceback here. Excellent profit margins, will learn to cope with falling dollar. My pick INFY.
7) Last but not the least: Emerging Markets. I do not think they are done by any means. The steam may be off a bit, but still they will beat the SP500 handily in 2008.
Sectors that will be DOWN in 2008:
2) Utilities (may be down or barely manage to beat SP 500)
3) Transportation (May be down due to rising costs overall)
Other general calls:
I am still bearish on Dollar. Gold will be a good place for 2008.
Here are few direct picks: 12/31/07
Technology: AAPL $ 99, ANSS $ 41.5, ANST $ 25.5
Agriculture: Multiple picks here: CF $ 110, TNH $ 151, AG $ 68, DE $ 93
Materials: PCU $ 105, FCX 102, Gold ETF
Financials: C $ 29.5, BAC $ 41.4
Housing: PHM $ 10.5 , ITB $ 17.5
Emerging Markets: VIP $ 41.9 EJ $ 24 INFY $ 45.3 FXI $ 171.5 IFN: $ 62.5 (India and China will be hot)
I would like to hear from you and why you agree or disagree with me.