Stock Market Forecast

Stock Market Forecast

Stock Market Predictions

While this week ended up, and the stock market predictions are for high stock prices, there’s volatility that investors need to weigh in.

Which stocks should you buy and which you avoid?  Well, how about sticking with those cyclicals and growth stocks on a consistent upward trend as the pandemic ends and the recovery begins.  Will that be oil stocks, tech stocks, housing market stocks, or best small caps?

In Pursuit of the Best Growth Stocks

While you might only be interested in the best stocks to buy (see below), best energy oil stocks or best tech stocks right away, best could mean a lot of different things. See the top gaining stocks as they hold insight into what is going right now.

Here’s BarChart’s 5 day top gaining list which is important to keep a watch on, firt the top percentage gainers and then the

Best Gainers

Screenshot courtesy of Barchart.com

Top Gaining Stock 5 Day

Screenshot courtesy of Barchart.com

While AI stock market forecasting tools are available and in wide use, it’s apparent to many who watch markets day to day, that investing, buying and selling, and confidence are an emotional thing.

In the end, you must educate yourself on market factors, economic factors and anything else that might play on which stocks are the best picks.  Below you’ll find the top gainers and some stocks to avoid.

Stock Prediction Software

It will be nice when we can hand the research and decision making over to your favorite stock prediction software and get rich. Of course, not everyone can get rich, so the challenge will land back on our own investment desk.

Using our own mental skills, research, data resources, connections and emotions, we’ll make our own investment decisions in 2021. The information resources for small investors is growing, which hedge fund managers may not like.

Stock Market Today Feb 5, 2021:

  • S&P 500: 3,886.83 ↑
  • Russell 2000:  2,233.33 ↑
  • DJIA: 31,148.24 ↑
  • Nasdaq :  13,856.30 ↑
  • US Dollar $91.01  ↓
  • Crude Oil:  $56.95 per barrel ↑
  • Gold: $1,811.7 oz ↓

Stock Market Indexes Rising

 

Stock Market major indexes. Screenshot courtesy of Yahoo Finance.

 

Stock Market Forecast for 2021

The most troubling period of 2021 is coming to end. Despite some coming volatility and corrections, overall the market is looking excellent for a big recovery later in the year.  With Google, Apple, and the Faangs posting record profits, you’d have to believe the outlook is very good.

What supports a great stock market outlook?

  • earnings reports are very good lately
  • Fed stimulus payout coming soon
  • Covid 19 vaccinations rolling along very well across the US
  • Fed promises to keep interest rates low for at least two years
  • inflation is only up 1.7%
  • current‑dollar GDP increased 6.0% in the last quarter of 2020
  • businesses will be reopening by May and accelerate fast
  • US economy will grow 4.3% according a WSJ survey of economists

The CBO just released its economic forecast this week. The outlook is definitely rosy based on solid exports and consumer confidence.  The US dollar looks like it will rise which would make export revenues climb.

There’s little doubt that the US economy will roar beginning in 3 months when the impact of the vaccination program begin to drastically slow the spread of Covid 19.

The markets roared ahead today bolstered by good news and earnings reports of FAANG companies. Covid infections are dropping so despite bad behaviour by some bad actors, it looks like we’re through the worst of it. Of course, no one knows if the new Covid strains will catch fire in the next 3 months to create another wave.

Stock Market Trends Correlate with Vaccinations

The stock market forecast does corelate with lax enforcement and testing, and many have given up on fighting bad actors, and instead have refocused on the vaccine rollouts.

It looks like the CDC measures and President Biden’s posturing are a waste of time for investors.  The vaccine rollout determines the market for spring and summer. Beyond that, there isn’t much to stop the economy from rolling and markets to hit new all time highs.

Although the DJIA, S&P and NASDAQ are up solidly this week, there’s no reason to believe we won’t see some corrections before the market takes off again in April. That’s when consumer spending and the housing market will really kick in. If stimulus money is delivered, we’ll see big growth in housing construction and home prices.

The market sectors roaring right now are industrials and financials, which are a potent combo.

CNBC Market Sectors

Market Sectors February. Screenshot courtesy of CNBC.

Top Gaining Stocks

Marijuana and Bio science stocks lead the way.  We’re not quite ready to invest in the hotels, airlines, and restaurants stocks, but you should be checking them as they may represent the best longer term investments.

Top Losing Stocks

The Reddit Rebellion stocks look to be on the decline and I doubt many will be willing to gamble on them.

Penny Stocks

Is this the time to buy a basket of penny stocks?

 

Best Growth Stocks to Buy in 2021

Kiplinger’s has offered up their top 10 picks for best growth stocks for 2021

  1. Market Axxess  MKTX ($562.78)
  2. Shopify  SHOP ($1,092.40)
  3. Square  SQ ($221.16)
  4. Netflix  NFLX ($522.86)
  5. Veeva Systems  VEEV ($274.26)
  6. Mercado Libre  MELI ($1,675.22)
  7. Prologis  PLD ($96.04)
  8. Chegg  CHGG ($87.33)
  9. Twilio  TWLO ( $334.59)
  10. Etsy  ETSY ($172.08)

 

Best Tech Stocks to Buy

Again the team at Kiplinger offers up their best tech stock picks for this year, and they include:

  1. Apple: (AAPL, $131.97)
  2. Zendesk: (ZEN, $142.83)
  3. PayPal Holdings (PYPL, $238.64)
  4. Broadcom (AVGO, $431.46)
  5. Cloudflare (NET, $84.98)
  6. Twilio (TWLO, $362.88),
  7. ServiceNow (NOW, $553.89)
  8. Palo  Alto Networks (PANW, $367.14)
  9. Salesforce.com (CRM, $225.78)
  10. Nuance Communications (NUAN, $43.74)
  11. Leidos Holdings (LDOS, $104.24)
  12. GoDaddy (GDDY, $84.96)
  13. Keysight Technologies (KEYS, $130.95)
  14. Lattice Semiconductor (LSCC, $43.76)
  15. Microsoft (MSFT, $222.75)

 

Best Oil and Energy Stocks

Jim Cramer and TheStreet.com chime in with their oil and energy stock picks for 2021.  Given the recent rise and the likelihood of oil exploration drying up, we could see very high oil prices this summer.  Are oil stocks the very best options for you?

  1. CARLISLE COS INC  CSL
  2. RENEWABLE ENERGY GROUP INC REGI
  3. QUAKER CHEMICAL CORP KWR
  4. VALERO ENERGY CORP VLO
  5. TOTAL SE TOT
  6. ECOPETROL SA EC
  7. PETROCHINA CO LTD PTR
  8. PHILLIPS 66 PSX
  9. EXXON MOBIL CORP XOM
  10. TRECORA RESOURCES TREC

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