With the stock market’s dramatic shift in attitude this year, many investors have switched to bullish trends and are working to find value and momentum. Three sectors that have seen notable progress in such bullish movements are technology, health care and financials. Here, we’ll take a look at how each sector has been performing and why they’re worth keeping an eye on as the year-end rally progresses.
In the technology sector, large gains have been seen across a variety of stocks. These have been largely powered by strong fundamentals as well as expectations for continued growth. Tech giants such as Apple, Microsoft and Amazon have all seen positive price action lately as investors take a more optimistic view of their long-term prospects.
Health care has also had a strong year, with many stocks experiencing bull runs. This includes names such as United Healthcare and CVS Healthcare, which have both seen double-digit percentage gains over the past few months. The healthcare sector is particularly favored due to its stability, dividend yields, and relative immunity to downturns.
Finally, the financials sector has seen strong gains in recent weeks. This is largely due to the Federal Reserve’s promises to sustain low interest rates for the foreseeable future, making borrowing costs low for businesses and individuals alike. Names such as Goldman Sachs, Morgan Stanley and CitiGroup have all seen significant price increases recently as a result.
In sum, as the year-end rally progresses it can be helpful to keep an eye on the technology, health care and financials sectors. Within these sectors, investors can look to discover value and momentum to take advantage of bullish trends. With any luck, those investing in these stocks will come out ahead as 2021 approaches.