Just like Jan 2010, the stock market is running up very fast in the first week of Jan 2011. It should correct soon, this month, according to Marc Faber. According to him, however, it should represent another opportunity to buy. Faber prefers energy companies and speculative stocks such as home builders and even AIG. He goes on to say that the third year of a Presidential cycle is very good for speculative stocks versus traditional blue chip value plays.
Specifically, Exxon Mobil (XOM), Hess (HES), and Chesapeake Energy (CHK) are Faber's key picks. Additionally, Peabody Energy Corporation (BTU) on the coal side and Cameco Corporation (CCO) for uranium should outperform over the next few years.
Faber also thinks the S&P 500 will outperform emerging markets in 2011.
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