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Charles Schwab Survey: Pick Energy, Tech and Healthcare Stocks Next Six Months

Tuesday, 20 Sep 2011 08:21 AM

Energy, technology and healthcare stocks should lead equity markets during the next six months, a study finds.

A Charles Schwab semi-annual study of more than 900 independent registered investment advisors finds that on top of those sectors, defensive plays such as consumer staples and utility companies will also perform well, CNBC reports.

"Both of these sectors are currently up the most in the S&P 500 index so far this year, with gains of 5 and 8 percent, respectively," CNBC Quantitative Analyst Giovanny Moreano writes.

"The survey, which covers a six-month outlook for investments, client portfolios and the economy, reveals that only 37 percent of respondents feel bullish on the stock market, compared to 56 percent back in January. The majority (41 percent) are neither bullish nor bearish."

The study also shows that 58 percent of advisors participating in the survey see the S&P 500 rising in the next six months, a 25 percent drop from January 2011 and the lowest level since January 2009, Moreano writes.

In the more immediate future, investors should keep an eye on the Federal Reserve, which may shuffle its debt portfolio in such a way to drive down long-term interest rates and spur more economic activity.

An announcement of such a measure, dubbed Operation Twist by the markets since its twists the numbers on the yield curve, could come this week.

Events in Europe will drive equity prices up and down, too.

"The Fed is really going to dominate next week," says Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont, according to Reuters.

"But the market has been trying to work its way higher here, trying to feel if maybe the European thing won't cascade out of control."

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Energy, technology and healthcare stocks should lead equity markets during the next six months, a study finds. A Charles Schwab semi-annual study of more than 900 independent registered investment advisors finds that on top of those sectors, defensive plays such as...
Schwab,Energy,Tech,Health,stocks
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2011-21-20
Tuesday, 20 Sep 2011 08:21 AM
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