Week 1 (December 4 – 8):
A very necessary Tech correction (i.e., the elevator down) is underway. This will allow for the next leg up among high-flying, high-earning tech stocks (i.e., the slower “back up the stairs”)among their respective market valuations). Once the correction bottoms, buying will again dominate so look for entry points such as the MACD (a chart indicator) crossing upwards and into the buying zone.
Growth stocks strongly recommended by analysts include BIDU, KLIC, DQ, PAYC, DXC, HQY, and SEDG. All have high rates of earnings growth. Also, DXC pays a dividend. Recent earnings blowout stocks include VMW and NTNX. Good dividend growth stocks are UNH, CWH, and V. If you want an international ETF to hold that includes high earnings growth Chinese stocks take a look at EEM. Good Investing!
Week 2 (Dec. 11 – 15):
The abrupt rotation out of Tech and into domestic stocks benefiting from the tax cut/reform bill appears over. That creates opportunities among the now lower priced high earnings stocks. I’d focus on buying lower priced tech stocks, financial sector stocks, and possibly some biotech. To that end, consider SEDG, V, CREE, PRAH, MTG, SKX, COHR, PPC and FIVE for growth. WLK is a good dividend growth stock. These stocks are mostly in the tech and financial sectors, but they also interface with the booming industrial sector. FIVE is a retail stock. Good investing!
Week 3/4 (Dec. 18 – 29):
The market looks to finsih the year strongly. Some stocks and funds you may want to consider for growth include TEAM, PRAH, ESPR, ZTS, MED, CMCO, NAIL, OSTK, and HON. Speculative considerations may include PRTK and GBT. Those that pay dividends include HON and ZTS, which makes them dividend growth stocks. A closed end fund (CEF) of 20 natural gas MLPs to consider is CBA, which yields about 10.2% per year. This is a good long-run growth play as natural gas is now an export with increasing prices. A sustainable “green” REIT investment that yeilds about 5.7% is HASI. Chinese growth ETFs to consider include MCHI and KWEB. Merry Christmas, a Happy New Year, and Good Investing!
