Sector fund bets for 2008
- Alan Lavine and Gail Liberman
Investing in sectors, which concentrate investments in a limited section of an industry, can be very risky.
But for those willing to take a chance with a small amount of holdings in exchange for potentially large long-term gains, AlphaProfit Sector Investors' Newsletter (www.alphaprofit.com) has this outlook on some of the most popular sectors.
Gold: The near-term outlook for gold bullion remains favorable. Longer-term, downside to the dollar may be limited if U. S. exports rise. Meanwhile, the cost structure for gold mining is changing, with miners having difficulty growing earnings--even against the backdrop of strong gold prices. Rising operating and mine development costs are putting pressure on mining company earnings.
Software: Internet companies are looking to mobile telephones for growth.
Materials: U.S. demand for most materials is being impacted by a sagging housing market and weakness in the automobile industry. Meanwhile, international demand for materials remains strong, and most companies are offsetting lower U. S. demand with stronger international sales. The materials sector appears reasonably attractive and is worthy of overweighting.
Spouses Gail Liberman and Alan Lavine are syndicated columnists. You can purchase Alan Lavine & Gail Liberman's latest book Quick Steps to Financial Stability (QUE Publishing 2006) online at www.moneycouple.com or at your local bookstore. E-mail them at MWliblav@aol.com.
To read more columns, please visit the column archive.