We have just went through one of the worse periods ever in the United States. The second great depression has finally past. It’s time to rebuild. We, as a nation, will continue to have a flourishing economy. Better times are ahead, and with that, we will have continued stock growth.
Commodities will continue to become a key player. The billions of dollars being produced will bring us out of one of the worse catostrophies in US history. It will bring on an offset of inflation that will beset to become another problem the government will have to control. We can use this to our advantage. Oil, gold, platinum, palladium, silver, all these commodities will become more valuable. We’ve already hit $1200 gold. We still haven’t seen this record growth in the ‘useful’ metals. I’m talking the commodities that are used to build things. As the global economy continues to grow, we will see another surge of industry booms. This means more demand for oil, more tools to be built with silver, and platinum and palladium being used to build more cars. Don’t listen to the naysayers. The dollar might be strengthening now but long-term commodities will become more valuable.
As we continue to get away from fossil fuels we will become more dependent our clean resources. Natural gas will continue to get more popular. We have stockpiles of natural gas. Fractural drilling has brought on one of the largest stock piles of natural gas in the US. We saw the prices hit rock-bottom in 2009. Watch the natural gas stocks start moving up like oil has for the past 30 years.
Alternative energy will continue to prosper. We are in no period to which we can reverse. It’s not the 1980s where we will hit rock-bottom oil prices.
China is growing at a record pace. It will need more oil. Same as other growth counties. As we use up the last stockpiles of oil we will need to adjust our demand for fossil fuels and move into alternative energies. Look for wind power, solar power, geothermal energy, and nuclear energy to grow. We are still figuring out the potential of each. With Obama money you will see continued growth in all these alternative energies. Climate change will furthur strengthen the cause for alternative energies. Diversify. Put money into good companies and watch your stocks grow as the economy improves.
Healthcare will again become a growing industry. We have a bunch of boomers that have reached retirement age. They will need healthcare, retirement centers, and bring another influx of necessary services to help the seniors. We also have a new government funded health plan that will bring insurance to all the people. Demand for generics will increase. Look for major healthcare companies to find ways to make money in these areas.
As people begin working again look for retail to increase. Look for major stores that will produce affordable goods. Look to supermarket stocks such as Kroger to grow. They produce affordable perfumes and other items that people would normally go to malls to buy. They have diversified their inventory base to produce for affordability and the frugal consumer. They are producing for the future where we will become a saver nation. Watch for major department stores such as Wal-Mart to continue to be key leaders in their industry.
The banking industry will continue to grow once again. Banks have finally paid off their TARP money. Small and medium size banks will consolidate to the bigger Wells-Fargo, Citigroup, JP Morgan, and Bank of America. Major banks will become the defining financial companies to run our country. Agree to disagree. The government will make sure these financial companies stay in business to keep us running.
Prospering times are ahead. We will have our normal corrections, but let it be known, we have reached the bottom of the economic cycle. It might take a while to start moving up, but it’s time to position your investments for the future. Now, let’s make some money!
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