It’s time to talk about the million-dollar question… Out of the 11 major sectors, which are showing the most strength over the next month, and which are the stock market sectors to watch through February 2022?
The short-term prognosis for the stock market, in our opinion, is that the retail sector is beginning to show signs of cash flow again.
We’re starting to see decent return buying in retail names like Macy’s Inc. (NYSE: M) and Kohl’s Corp. (NYSE: KSS) — which is shocking considering the fact that they just got crushed.
However, it’s important to point out that the fleeting strength we’re seeing in the retail sector is better equipped for a day trader — you won’t want to spend weeks in a retail name at this point in time.
But if you’re looking for sectors to go long in January, then you need to start paying attention to the housing sector.
I don’t know how it is in other parts of America, but here in Florida, the housing market is still booming. So names like KB Home (NYSE: KBH), Lowe’s Companies Inc. (NYSE: LOW) and Home Depot Inc. (NYSE: HD) are some great stocks to start looking into.
And I keep hearing other investors say they can’t wait for housing stocks to come down… and they have yet to do so.
We also have to remember that people are also buying houses with cash or at least a 50% down payment, which makes this an entirely different housing market than the one we saw in 2007-08. Back then, everyone was putting down only 2% down.
Residential real estate REITs are also a good place for investors to start watching. With real estate prices reaching astronomical levels and rent skyrocketing, people are leaving the housing market and going into apartments — and apartment investments.
These are strong hands that are holding real estate, and the inflation and volatility that are going to ramp up in 2022 will only aid in the sector gaining more strength.
And speaking of inflation, there are a couple more stock market sectors to watch through February 2022 that’ll benefit from it….
Stock Market Sectors to Watch Through February 2022
In light of the inflation every investor is bracing for, I expect things like cryptocurrency and energy to go much higher than we saw in 2021.
Every single month, I’ve watched the Federal Reserve promise this will be the last month that we’ll see a huge inflation number, and that it’ll start to abate…
Well, I’ve been hearing this crap for seven months and we keep making new records. So call me crazy if you want, but I expect we’re nowhere near the peak… and inflation is going to explode.
And, guys, I have a strong indication that commodity stocks are set to boom like we’ve never seen before because of it…
But before I dive into that, WealthPress Senior Strategist Roger Scott, New Money Crew Head Trader Lance Ippolito and I have some key insights into what will happen to the technology sector in the short term in 2022… and it ain’t looking pretty.
Watch the video below to learn more about the best stock market sectors to watch through February 2022… and what I expect to be the best trading strategy in 2022…
And as always, send any trading questions to jeff@joyofthetrade.com and stay ahead of the markets, especially these choppy ones, by subscribing to our YouTube channel.
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A lot of people have no clue, but Barclays bank engineered this ONE ticker to bottle up all of the volatility in the markets in one place…
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Now, I’m going to show traders exactly how I’ve been able to find these kinds of setups on this explosive ticker.
