Stock market brokers, dealmakers, and investors are all looking ahead to 2014 with great anticipation for what could be a bumper year for investments. There is more confidence than in previous years heading towards January that there will be real growth in global markets throughout the year ahead, and as such, investments could be set to flourish.One key difference as we head into 2014 is that the ‘fear factor’ that has hung over financial circles for most of this year looks like it is dissipating for good. 2013 saw deals done too quickly, tentatively, or not at all as investors struggled to deal with their fear that stock market fluctuation from one day to the next could wipe out their capital completely.
A more stable economic front across the Eurozone as well as the United States should see stock markets recover well and investors cash in during 2014.
With that in mind, we looked at some of the best sectors and companies to be buying public stocks in during the early part of the year.
Healthcare
While healthcare is always a top investment proposition due to its position as a ‘need’ for many people around the world, the potential break-up of global giant Johnson and Johnson during 2014 should be all the motivation investors need to buy up stocks in the company.There is a feeling across many industries that the business has gotten too big for its boots, and even internally, there are thoughts that breaking it up would help to move it forward into the rest of the decade. Inevitably, there will be some sort of share offer in order to aid the efficient break-up of the business, so investors should look to be in the best position to cash in should this happen.
Energy Companies
Much like healthcare, energy companies are always a great investment as they are pretty much guaranteed to be profitable.
Don’t be reckless, however, and ensure you target gas companies in 2014 for high yield investments. Gas is the energy of choice for many Governments around the world as they re-assess the efficiency of wind energy and other renewable sources. Demand, and the opportunity to make big money, will be high here next year.
There is criticism of energy companies around the world because of their constant raising of prices; if you are going to be hit on your bill you might as well take at least something back in way of a dividend or return of equity from an investment in one of them!
Property
The key to property investments in 2014 will be to continue targeting emerging markets.Europe and the United States are still a risk despite them having dealt with the worst of their problems, so look for companies that are building in Africa and South America in particular, as these remain key areas both in terms of residential and commercial property builds.
Is next year when the stock markets are set on a permanent path to recovery? There is a definite cause for cautious optimism, so invest wisely and make the most of the investment opportunities 2014 will bring.
About the Author:James is a keen investor who thinks he has an eye for a good deal, so much so that he was able to give up his old job as a mechanic three years ago and start using the financial markets to make a living.
