Here's a basic lesson I'd suggest you consider:
If basically everyone, for whatever reason, thinks a stock (or sector) is a great opportunity in the future, then the demand for that stock or sector will increase right now and, as we know, demand increases prices. Therefore, the expectation that something happens will most likely affect prices before that thing happens.
I mention the above because I think it's tough to try to play the guessing game of "which sectors are poised to do well?" and "does the current price of stocks in that sector already reflect this growth expectation?".... Instead, I tend to support a more diversified approach that de-emphasizes the need to predict the future (which, as we know, is basically impossible).
Of course, if I can clarify any of the above or offer any guidance, please feel free to reach out.
Adam C. Harding, CFP
For informational purposes only, not to be considered investment, tax, or legal advice.
See my recent articles in The USA Today and Nasdaq.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines
. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.