Winning Stock Market Sectors For Investors In 2017

By Reina Ilagan

Dec 09, 2016 10:07 AM EST

Investors are watchful for the most promising stock market sectors in 2017. And while some investors usually focus on a selected few, it is highly advisable to follow all stock markets in order to achieve outperforming investments.

Among the most known stock market sectors are the ones represented by the nine sector ETFs such as Energy Select Sector, Financial Select Sector, Industrial Select Sector, Materials Select Sector, Technology Select Sector, Consumer Staples Select Sector, Utilities Select Sector, Consumer Discretionary Select Sector, and S&P Retail.

A report that appeared on Investing.com enumerated the five best stock market sectors as 2017 kicks off. With the ongoing market sector rotation more inclined towards value stocks over growth stocks, the report identified sectors that are part of the value stocks segment.

Predicted to perform well in 2017 is the automobile industry. The sector is said to be breaking out from its 18-month downtrend.

"If the automobiles sector, represented by the Dow Jones Automobiles & Parts Index, trades above 300 points for at least 3 weeks, we can expect investments in this sector to be profitable in 2017," stated in the article.

Building and construction are also expected to be a winning stock market next year, considering its potentials for profits. The rising interest rates may drive the sector's growth. The sector has also been in a consolidation phase for way too long. This suggests that the time is ripe for it to move from lagging to leading.

Third is the industrial machinery with its path in the chart evolution similar to that of building and construction, although more volatile.

The toys sector also shows potential for long-term upward momentum. The report said that this looks like a good entry point in the market sector.

The water sector has also been identified to have upside potential in the coming year. Like the building and construction sector, former resistance will be the water sector's support.

"The challenge for investors is to select the out-peforming stocks within the leading sectors. That is the recipe for investment success," the report concluded.

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