Stock picks for 2019

Posted By Darren Winters on Dec 30, 2018

Stock picks for 2019

So what are the stock picks for 2019? Assuming the contrarian view that the stock market rout in December (the worse since the Great Depression) was merely a normal pull-back after a good run?

But keep in mind that the recent stock price surge could also be a bear market rally (a sucker’s rally) spurred on by President Trump’s Plunge Protection Team (PPT) and a $64 billion end of year rebalancing out of bonds into stock by Wells Fargo’s pension fund division.

Nevertheless, with stocks now less expensive (or becoming less expensive) let’s take a look at potential bargain stock picks for 2019, after all the game is about buying low and selling high.

Buying opportunities are plentiful when the market is weak so here are my stock picks for 2019

Technology sector looks heavily sold and investors could find opportunistic stock picks for 2019 in technology.

Protecting Strategic industries could be the motive behind US-China trade tensions.

Chip makers play a key role in the strategic industries of the 21 century.

So semiconductor-related stocks are high on the list of stock picks for 2019

Stock picks for 2019

“The massive decline more than discounts the modest downturn in the semiconductor cycle,” said John Buckingham, editor of the Prudent Speculator newsletter.

The technology sell-off has created real opportunities for value investors. John Buckingham identifies Lam Research which supplies equipment to make chips as one of his stock picks for 2019.

The stock is down by almost 50% from its 52 weeks high and it is trading eight times its forward earnings.

A number of investors with John Buckingham being one of them are betting that the chip sector will pick up again in 2020 and the market will start pricing that in 2019.

The energy sector could also provide winning stock picks for 2019

The oil sector has been heavily sold with SPDR S&P Oil & Gas Exploration and Production exchange-traded fund down more than 40% so there are a lot of stocks in the energy sector that look cheap. The big three Royal Dutch Shell, Exxon Mobil, and Chevron all look attractive but some investors see opportunities in oil companies that have recently come out of bankruptcy. But with tighter credit, the cost of financing debt on the horizon I am skeptical about high leveraged business being able to weather more expensive money in an economic downturn.

Stock picks for 2019 also include blockchain’s disruptive technologies particularly those stocks that streamlining supply chains and cut out the middleman are likely to do well.

You can safely bet that the Amazon effect is likely to become even greater in 2019.

The Fintech revolution is likely to provide investors with profitable stock picks for 2019

Fintech revolution, a portmanteau of “financial technology” which seeks to improve and automate the delivery of financial services will continue to already have an impact on how millennials, the smartphone generation conducts their daily financial transactions in 2019.

Discounted “dividend aristocrats” (blue chips with a track record of paying dividends) are also on the list of stock picks for 2019

So there are a number of black thoroughbred stock picks for 2019 lurking in this market. But the question is could they get even cheaper by waiting patiently on the sideline?

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