Predicting how the markets will perform is always difficult. Experts spend their time making projections about the future, and most of the markets’ prices reflect careful analysis. These experts, however, are often wrong, and those who can predict which sectors that will outperform what the experts believe stand to make considerable money. It is impossible to know with absolute certainty how well certain segments will perform, but here are three market sectors that are likely to perform better than experts predict.
1. Health Care
Conventional wisdom dictates that demand for health care changes little from year to year. This belief is based on the fact that the state in the economy has little impact on health; as a result, people continue to see their doctors even if they cannot afford it, people rarely see their doctors unless they have a pressing health issue. There are, however, some reasons to believe that this may not be the case. People often ignore health issues they see as minor when they cannot afford to see a doctor without going into debt, and a number of people have health issues they have ignored during the recent recession. With the economy recovering, many of these people might take a trip to the doctor, and medical practices will likely use this extra money to upgrade equipment or purchase new supplies needed to handle increased demand.
The energy sector is another sector that experts have traditionally been good at predicting. The stellar projections, however, came when the energy field was much easier to understand. Instead of just dealing with coal, diesel and nuclear power, green energy is now an important part of the market. In addition, natural gas is having a major impact on the market as well, and it produces more than one-third of the energy used in the United States. Energy prices also fluctuate with the market. As a result, people can expect the energy sector to scale the economy. Those believe that the economy will rebound should ensure that energy is a major part of their portfolios.
The technology sector has changed dramatically in recent years. Smart phones have revolutionized how people view computing, and tablets have become a major part of the sector as well. In addition, new paradigms are coming to the tech sector in a big way. The cloud, in particular, is becoming more popular every year, and businesses that have more capital thanks to the rebounding economy are making the switch. Further, the cloud is starting to come to the consumer sectors in a big way as some of the biggest tech companies are offering cloud services. While some tech stocks will outperform others, the sector as a whole is poised to outperform expectations.
The markets are rebounding, and analysts are taking this into account when making projections about how stocks will perform. In some cases, however, they may be underestimating the performance of the markets. By finding areas where growth beyond expectations appears likely, investor stand to have a great year.