As the US economic recovery looms larger, the gray cloud that has hung over the stock market for so long is finally starting to fade.
So whether you’re making broad sector bets or picking individual stocks, now is the time to put your money back to work and start rebuilding your hard-hit portfolio.
“The recovery has just started," says Bob Froehlich, senior managing director at The Hartford. The Dow’s move "from 6,600 to 10,000 is giving us back what we should have had in the first place,” He expects the Dow Industrials to hit 11,000 by the end of 2009 and 13,000 by the end of 2010.
“Through the next 14 months there are a couple of sectors that are going to lead us through this recovery,' says Froehlich.
FinancialsFinancial services is one. Because it has been so beaten down with investors overreacting to the economic fallout, financials "are positioned better than any other industry."
An expected uptick in mergers and acquisitions, combined with increased IPO activity and a steepening of the yield curve also bode well for financials—especially firms with investment banking franchises.Page 1 of 6 | Next Page