The stock market just keeps going up. In the depths of the Great Recession you could have bought Amazon.com for $37 a share and now it trades close to $1,000. Amazon.com also has a P/E ratio of 250. In fact the tech darlings that are still driving the rally are all overpriced by historic standards. Are there any bargains left? Are there any sleepers you should invest in? CNBC writes about 5 stocks that have gone nowhere in 2017 but are stocks that may be worth buying.
In the midst of a raging bull market, some stocks in the S&P 500 have seen virtually no gains or losses this year.
But some of them could be worth buying for a breakout, according to some market participants.
Goldman Sachs, Quest Diagnostics, Mylan, Concho Resources and Fastenal have all been trading within 0.2 percent of where they began the year. Max Wolff, chief economist at Disruptive Technology Advisers, says two of them stick out to him the most.
The first of these is big bank Goldman Sachs, which actually fell following its earnings report on Tuesday.
The underlying theme for each of these stocks is the reemergence of inflation as an economic factor and revival of the global economy.
Where Should You Invest?
If you think that the US stock rally has nearly run its course you can search for overlooked stocks or you can look offshore. We have written about foreign direct investment and suggested looking at the most recent World Investment Report published by the United Nations.
Follow the money is age old advice for knowing why something is happening. In this case we would like to follow the money that goes into foreign direct investment. Foreign direct investment is done by folks with lots of money and the intention to stay a course and make a profit. If you are looking for offshore investment ideas, take a look at where foreign direct investment goes year after year after year. There have been changes afoot regarding where foreign direct investment is going. A very useful reference in this regard is the just published United Nations study, World Investment Report.
Whether you are looking for foreign direct investment ideas or simply looking to see where the smart money is going take a look at the most recent 2017 report.
In 2016, global flows of foreign direct investment fell by about 2 per cent, to $1.75 trillion. Investment in developing countries declined even more, by 14 per cent, and flows to LDCs and structurally weak economies remain volatile and low. Although UNCTAD predicts a modest recovery of FDI flows in 2017-2018, they are expected to remain well below their 2007 peak.
The point is that you need to be selective about where you put your money. In order of who is considered the best investment location the USA leads followed by China, India, Indonesia, Thailand, Brazil, the UK, Germany and Mexico. Only the USA, Germany and the UK qualify as developed countries and fall in the best places to invest category.
Are There Any Sleepers You Should Invest In? DOC
Are There Any Sleepers You Should Invest In? PDF