Best Stocks To Buy

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1. anna says:

   February 22, 2009 at 1:18 pm

   Hi,
   Many thanks for your question which is a good one, although I have no idea which country you are looking to trade in so my answer will have to be a little broad. The first point I would make is that in order to trade successfully in any stock market, it is important to understand where you are in the trading cycle. In today’s economic climate this is a relatively simple exercise as we are clearly in recession wherever you live in the world. In simple terms the stock markets have four cycles, early recession, late recession, early recovery and late recovery, and depending on where we are in the cycle will dictate which stocks are likely to be the best performers in that particular cycle. The starting point in any analysis is always to look at the overall market first, then the sectors themselves, and then to drill down to look individual stocks and shares within each sector. I have included a link here which explains the process of how to choose the best stocks http://www.making-bread.co.uk/best-stocks-to-buy.htm which I use myself for stock selection. With regard to the current market, I would suggest that some of the analysis is god old fashioned common sense and a little thought. In a recession everyone still needs to eat, and as we are already seeing, the up market food retailers are starting to suffer, with those in the mid to lower end doing well as customers look to reduce food bills accordingly. So I would look at stocks or shares in this sector. Utilities always tend to do well as we move from early recession where we are at the moment, into late recession later this year and early in 2010. Again people have to keep warm and always need the basics of heat and light. These companies are virtually recession proof. So in summary look at stocks in sectors which address basic needs, or where the consumer has little choice of where to buy. I would avoid any sectors such as retail, banking, travel, holidays, luxury goods and services etc. I hope this helps and good luck with your trading and investing – regards Anna

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