It’s that time of the year – holiday season – and investors are showing a great deal of optimism. Market analysts widely agree that this period is typically bullish and so far that’s been the case for the current year as well.
The S&P 500 began the year in a relatively positive mood, reaching record highs in February, and has continued to be bullish leading up to the holidays.
Alongside this seasonally encouraging macroeconomic environment, investors are harping to sectors that tend to provide outsized returns this time of year. One of such sectors is consumer discretionary, which is expected to be one of the biggest beneficiaries. Other sectors offering great opportunity for investment gains include communication services and energy.
Consumer discretionary stocks should see increased demand, just ahead of the holidays. This is because of the higher levels of shopping activity and increased purchases in anticipation of the New Year. Companies such as Amazon, Home Depot, and Walmart are expected to benefit the most from the holiday season.
Another sector that often sees plenty of market enthusiasm at this time of year is communication services. The increasing usage of Voice over Internet Protocol (VoIP) services, streaming video, and the growth of 5G is driving up the demand for communication services stocks. Companies including AT&T, Verizon, and Oracle Corp are expected to bear the brunt of the seasonality among the communication services sector.
Energy stocks also tend to get a boost from the holiday season. The increase in holiday travel and heightened entertainment activity mean that oil and gas companies can expect a lift, especially if temperatures stay low. Companies such as Chevron and Exxon may particularly benefit from the seasonality in this sector.
In conclusion, the holiday season is always an encouraging time for investing and this year is no exception. Investors would be wise to consider the opportunistic sectors such as consumer discretionary, communication services, and energy this year. These sectors are expected to bring significantly higher returns and offer investors the best return on their investments.
It’s that time of the year – holiday season – and investors are showing a great deal of optimism. Market analysts widely agree that this period is typically bullish and so far that’s been the case for the current year as well.
The S&P 500 began the year in a relatively positive mood, reaching record highs in February, and has continued to be bullish leading up to the holidays.
Alongside this seasonally encouraging macroeconomic environment, investors are harping to sectors that tend to provide outsized returns this time of year. One of such sectors is consumer discretionary, which is expected to be one of the biggest beneficiaries. Other sectors offering great opportunity for investment gains include communication services and energy.
Consumer discretionary stocks should see increased demand, just ahead of the holidays. This is because of the higher levels of shopping activity and increased purchases in anticipation of the New Year. Companies such as Amazon, Home Depot, and Walmart are expected to benefit the most from the holiday season.
Another sector that often sees plenty of market enthusiasm at this time of year is communication services. The increasing usage of Voice over Internet Protocol (VoIP) services, streaming video, and the growth of 5G is driving up the demand for communication services stocks. Companies including AT&T, Verizon, and Oracle Corp are expected to bear the brunt of the seasonality among the communication services sector.
Energy stocks also tend to get a boost from the holiday season. The increase in holiday travel and heightened entertainment activity mean that oil and gas companies can expect a lift, especially if temperatures stay low. Companies such as Chevron and Exxon may particularly benefit from the seasonality in this sector.
In conclusion, the holiday season is always an encouraging time for investing and this year is no exception. Investors would be wise to consider the opportunistic sectors such as consumer discretionary, communication services, and energy this year. These sectors are expected to bring significantly higher returns and offer investors the best return on their investments.
