As the stock market continues to rebound from its lows of 2008 and 2009 and the doldrums of the recent financial recession, several industries have begun to show promise as the best bets for your money in 2013. Although it should be cautioned that as markets move over time certain industries fall in and out of favor with the market based on the cyclical nature of the stock market, these industries deserve consideration for inclusion in your stock portfolio. As always, you should follow a disciplined approach to investing and base investment decisions on your own situation.
A Look at the Stock Market
The Dow Jones Industrial Average, a measurement of the bell weather companies trading in the U.S. and a top benchmark index, is up 12.94 % for the period December 31, 2012 to June 21, 2013, while the S&P 500 Index, a broader based measurement of the market than the Dow Jones, is up 11.66 % for the same period of time. Industries that have led the way in the recent stock market insurgence include banking, specifically credit cards (up 5.23% over one year period June 25, 2012-June 22, 2013) and auto financing (up 3.8% and financial planning, up 4.65% for the above stated year to year period).
Inside the Banking and Financial Services Industries
Strong growth within the banking and financial services industry in 2013 is fueled in part by the strong overall rise in the stock market and a rebound from the lows experienced by several financial institutions after the financial turmoil of 2008-09 and the resulting government bailout and purchase of “toxic assets” from the balance sheets of the banks. Banks have recovered nicely from an increase in housing sales, at a rate of 5.18 million homes in the month of April sold, up 13 % for the year. This activity has led to heavier lending activity on the part of banks. Stocks to look for in the banking sector include Bank of America (NYSE:BAC), Morgan Stanley (NYSE:MS) and Sun Trust Bank (NYSE:STI). Each of these well capitalized companies (a combined $200 billion in market capitalization) who also offer a portfolio of financial management services to clients, as evident in the rise in the financial planning sector, are poised to benefit from complete repayment of TARP funds and resurgent growth in the banking and financial planning sectors. Please understand that the information presented here does not represent specific investment advice based on your own situation, as well as financial goals and objectives. You should consult with a financial advisor or other investment professional before investing any money and also understand that all investing involves risk, including the possibility that you may lose some or all of the value of your investment.
This article was written by Richard Craft, an MBA student who looks forward to helping you with your personal finances. He recommends taking a look at the finance jobs with moneyjobs.com when looking to get your career started in finance! Check them out today and see how they can help you!