In very recent months, it appears that many investors have grown fearful of the market and its extended bull run. 6 years is a long time, after all.
That sentiment has been obvious by looking at the strength of a defensive sector—utilities—since the latter parts of 2014.
But with overstretched valuations on many economic factors causing that defensiveness, is now the time to start investing in companies reporting huge earnings, like these?
There’s really no questioning the defensive mindset of investors. With record-low interest rates and real confusion as to the immediate future of the market, it’s only natural.
But at what point does that mindset change? And what happens to those who see that change coming first?
They will profit, most likely. And possibly in a very big way.
So what should you be looking for when that mindset changes?
Nobody knows the perfect play going forward for sure, but I’ve singled out a market section that might prove to be the strongest when defensiveness is replaced by greed…
Earnings. Big-time earnings. That’s what some of the name-brand tech stocks are seeing.
Just a couple of weeks ago, Apple (AAPL) beat expectations with a 48% increase in earnings per share when they reported $18 billion in profit and $74 billion in revenue.
That’s the most profitable quarter ever for any company.
And several other similar companies, such as Google, Intel, and Microsoft, had relatively favorable reports compared to the results from the energy and financial sectors.
We could be sitting on the brink of technologies resurgence right now, and those who see it coming first have the best chance to make the big money from its rise to power…
