3 Top Stocks To Buy Today 2014 – Three Commandments For Stock Market Success
Wed, Nov 27, 2013
The Top 3 Stocks To Buy Now
If you’re looking to book some fast profits today’s market, there is a lot of opportunity.
The markets are up 150% since 2009. They are on the verge of having another great year. And we’re getting to a point where as long as you own stocks, you will do very well.
But whether the market rally holds up for a few more years or whether we’ve already hit the market top, we want the top stocks to buy right now 2014
That requires a bit of research about what makes a great top stocks to buy today 2014.
The following chart put together by AQR Capital Management shows something most investors will never realize about great top stocks to buy today:
The chart breaks down the returns of stocks with the best price momentum.
A stock’s price momentum simply means it’s moving up. A stock with good price momentum means it has moved up. A stock with bad price momentum has gone down.
As you can clearly see in the chart, the Stocks With The Best Price Momentum offer the best returns.
Basically, it says the stocks that have gone up are the most likely to go up significantly more in the short-term. So if you’re looking for a top stocks to purchase today and flip it for some relatively quick profits, the stocks with the best price momentum are the place to be.
There are all sorts of systems to help identify stocks with the best price momentum. A quick review of popular stock trading web sites will find thousands of experts with all kinds of trading “systems.” The systems are mostly based on common technical indicators. The common indicators include Bollinger Bands, stochastics, and all sorts of other indicators.
For our purposes, and for investing in generally, we find that simple is better. As a result, we can determine the stocks with the best price momentum, and are therefore the Best Top Stocks To Purchase Now, picking the best-performing sectors from the past six months.
The sectors that have done well over the last six months would have the best price momentum. And according to the past research above would say they offer the opportunity for the highest returns.
Here are the three sectors with the best price momentum which will lead you directly to the best top stocks to purchase 2014 today:
Top Stocks To Buy Right Now #1: Tires
One of the biggest moving sectors with the best performance over the past three years, one year, and three months is the tires sector.
The current tire boom is going hand in hand with the current boom in auto sales. At current pace, U.S. auto sales should be setting a new record within the next 18 months.
All of those new cars need tires. And with the economy still recovering, consumers are tending to buy new and better tires rather try and work another 10,000 or 20,000 miles before replacing them.
The prototypical tires index stock is Goodyear Tire & Rubber Company (GT). Its shares have doubled in the past year and shows excellent price momentum.
Top Stocks To Buy Right Now #2: Recreational Vehicles
If you want to know an economic recovery is underway or not, the best place to look is the recreational vehicles sector.
These are the vehicles which are the first to get scrapped out of most consumers’ budgets. So when the economy is down, recreational vehicle sales plummet. When the economy is strong, their sales soar.
The leaders in the sector are great hot stocks to trade today. Winnebago (WGO) is one of them. Arctic Cat (ACAT), a maker of snowmobiles and quads, is another. Harley Davidson (HOG) is another typical top-performing recreational vehicle stock.
Top Stocks To Buy Right Now #3: Travel & Tourism
Just like tires and recreational vehicles, travel and tourism stocks are highly economically sensitive.
Consider a hotel. It has let’s say 100 rooms available per night. In a weak economy it may be filling 80 of those rooms for conferences and many business-related events. It covers its costs and may turn a slight profit while it’s in survival made to make it through the tough times.
But when recreational travelers are added, the hotel’s occupancy rate climbs from 80% to 95%. And since most of the costs in a hotel are fixed, its earnings soar right along too.
That’s why Travel & Tourism stocks are rocking. Cruise lines are filling more beds. Gamblers are filling up Las Vegas resorts. The turnstiles at amusement parks are spinning faster. And on and on throughout the entire sector.
Some of the best bets in Travel & Tourism are Six Flags (SIX), Disney (DIS), and Starwood Hotels & Resorts (HOT).
These are three sectors with excellent price momentum.
The best stocks to buy now identified within each are exceptional performers within exceptionally-performing sectors.
The historical data shows that stocks that are going up tend to outperform. These stocks with the mix of strong sectors and leading stocks within those sectors make them some great top stocks to buy today for those investors looking to bag some quick gains.
For long-term investing, however, the top stocks to purchase are always the cheapest and out of favor.
Just make sure you know what you’re expected holding time before buying into a hot stock for a quick profit or a cheap stock only a Contrarian Investor could love for bigger, longer-term gains.
The Group of Big Investors in United States.
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