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Monday, December 27, 2010

Looking Ahead 2011

Winding down 2010 and looking ahead to 2011
Im sort of mixed in my feelings and almost i should say BLANK about 2011, Every body around is predicting good retail sales over holidays, more momentum in industrial output, growing emerging markets, rate hikes in china, higher oil prices all indicate we are looking towards growth
Its a good story to beleive in
Im although as i said BLANK, i will stay on side lines for the first couple of weeks in January and wait and watch how things shape up.
My top sectors to watch for 2011 with good growth prospects are
XLF - Financials / FAS for risk takers
XLV - Financials
XRT - retail
FAA - Airline stocks after Oil plateaus
XLK - Tech is cheap and is really cheap
Combine this with Internationals which you are comfortable and knowledgeable about
May it be
Brazil, Turkey, India, China, Austria, Singapore, Malaysia,South Africa, New Zealand, Australia, Canada
whichever is your most favorite country play some exposure there would complement a US domestic.
For 2011, i do expect the internationals to look at US domestic and feel US is cheap and good area to invest, i expect may Emerging and Soverign funds flowing money into US which could help drive US equities up
Shorting TLT , buying TBT will be good trade
Buying metals such as SLV and PALL could be good trades, some gold will be ok , i prefer silver and palladium
What are some of your thoughts ?

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