Healthcare, tech and energy to outperform in next 12 months

Posted Nov 2nd 2009 9:40AM by Tom Johansmeyer
Filed under: Microsoft (MSFT), Stocks to Buy

For the first half of 2010, almost two thirds of money managers are bullish, according to Barron's. In fact, 54% are bullish, and 5% are "very bullish." Responses suggest that the Dow Jones Industrial Average is expected to gain another 5% by the end of the year.

According to Barron's, "Today's bullish investors see the major stock indexes making steady progress through next June, amid signs the U.S. economy is on the mend after a searing recession."

Participants in the survey see three sectors catching fire in the next six to 12 months: healthcare, technology and energy. Metals and mining is one of the subgroups money managers expect to do well. As for oil prices, the money managers are bullish to neutral, with crude forecast to stay in the range of $70 to $75. Financials and consumer cyclicals are expected to suck.

In the energy sector, I'd look specifically for clean technology companies. Through 2009, this sector has attracted a hefty amount of capital, and it's only going to gain momentum in 2010. There is a lot of cash flowing into this space, and that's bound to have an impact on valuations.

The top stock for 2010 according to the Barron's survey is Microsoft (NASDAQ: MSFT). Managers expect a bump from Windows 7, plus some support from the rising IT spending trend.

Tags: barrons, clean technology, CleanTechnology, consumer spending, ConsumerSpending, dow jones industrial average, DowJonesIndustrialAverage, energy, financials, healthcare, inthenews, it spending, ItSpending, metals, microsoft, mining, money managers, MoneyManagers, msft, technology