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The Hottest Stock Sectors of 2014


Knowing The Hottest Stock Sectors of 2014 Can Lead To Outperformance

Hottest Stock Sectors

What are the hottest stock sectors of 2014 that provide traders and investors the best opportunities for making money?  Answering that question will lead traders and investors to some of the best opportunities to make money in the stock market during 2014.  While many of the hottest stock sectors of 2014 will be familiar names, some appear to be poised to be particularly hot over the coming year, and in some cases far beyond.  Traders and investors looking to get into the hot stocks that have the potential to maximize gains need to be aware of which sectors are likely to spawn the hottest stocks of the year.

One thing that separates professional traders from novice traders is the ability to pick up on ways to outsmart the overall stock market and get into the stocks that provide the best opportunities for making money from significant moves higher.  The reality is that stocks often trade based on sentiment more than fundamentals, especially during a bull market.  A company can have solid fundamentals, but if they are in a sector that market participants are not interested in at the time, then their stock price can languish.  Conversely, even stocks with questionable fundamentals can experience significant gains if the sector they are in is hot and has the attention of Wall Street.  This is why identifying the currently hot stock sectors is so vital if a trader or investor wants to beat the stock market averages.

Many of the hottest stock sectors of 2013 are likely to continue to be the hottest stock sectors of 2014.  With a strengthening economy, new technologies, and changes in laws going into effect during 2014, certain stock sectors are likely to outperform the overall stock market.  It is in these sectors, which are outlined below, that traders and investors should look for stocks to ride up, if the bull market rally continues through 2014.

The Hottest Stock Sectors of 2014 Associated With The Economy

Home Improvement Hot StocksWhile nobody knows for sure how strong the economy will be during 2014, given the strong economic finish to 2013 and the prospects for global economic growth in all three of the major trading blocs during 2014 (Asia, North America, and Europe), the materials and industrial stock sectors are likely to outperform over the coming year.  This is due to the likely increase in demand for their products, as economic growth increases demand for raw materials and finished industrial products, which should lead to higher revenues and earnings for companies in these sectors during 2014.  Another hot sector associated with economic growth is likely to be the home remodeling industry, since many consumers turn to remodeling their homes at this point in an economic recovery, as the recovery matures and home prices start to rise.

The Hottest Stock Sectors of 2014 Associated With New Technologies

New technologies are almost always a driver of hot stock sectors, and 2014 should be no different.  Look for the 3D Printing technology sector to once again be one of the hottest stock sectors in the market, as awareness of 3D Printing technology grows and companies in the sector continue to report rapid growth in revenues, and in some cases earnings.  This sector is particularly interesting since big industrial companies, such as General Electric and Hewlett Packard, are showing interest in the sector, and make either team up with or buy out 3D Printing companies to increase their exposure to the sector.

The Hottest Stock Sectors of 2014 Associated With Changes In Laws

Hottest MarijuanaStocksThe legalization of marijuana is quickly evolving into a runaway train, which will continue to put stocks that are in the marijuana business in the spotlight as one of the hottest sectors of 2014.  What started out a decade ago as voter initiatives to legalize medical marijuana in the Western United States has morphed into legalization of marijuana for recreational use in Colorado and Washington.  This movement to legalize marijuana for both medical and recreational uses is showing no sign of slowing down and is spreading across the United States.  Additional states may vote in November 2014 on initiatives to legalize marijuana for medical or recreational purposes.  Additionally, many state legislatures are also taking up the question of marijuana legalization during 2014.

What this means is that the burgeoning industry of companies that provide marijuana products and services should continue to experience rapid growth during 2014 and beyond.  With the incredible prospects for growth ahead, the marijuana sector should continue to be one of the hottest stock sectors of 2014.

Other Stock Sectors Likely to Be Hot During 2014

Although the rollout of the Affordable Care Act (Obamacare) has been anything but smooth, it does appear that it will be the law of the land for 2014, which means the healthcare sector should continue to be one of the hottest stock sectors during 2014.  Despite all of the law’s flaws, it appears the Affordable Care Act is going to drive a lot of spending towards the healthcare sector, as new initiatives to modernize the healthcare delivery and to bring the uninsured into the healthcare system will increase revenues and potential earnings for many companies connected to the healthcare sector.

2014 looks to also be yet another hot year for the energy sector, specifically for companies involved in the exploration and production of oil and natural gas in the United States.  The oil and natural gas boom that began several years ago in the United States is showing no signs of abating yet, and 2014 looks to be another year of strong growth in this sector.  In addition to the United States, Mexico’s recent decision to allow foreign investment in its oil and natural gas fields should provide additional growth for the energy sector during 2014 and beyond.

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