Stock markets in 2023 shook off the highly bearish selling in the previous year. Investors rode the bullishness of generative AI. Nvidia (NVDA) now trades at a $1.18 trillion market capitalization. Still, the “double top” bearishness on the chart suggests a $500 top for NVDA stock.
As the year-end rally unfolds, investors may add to AI-related stocks. Microsoft (MSFT), Alphabet (GOOG), Amazon (AMZN), and Apple (AAPL) are the long-term winners. They might lead the 2024 tech trend again.
Cautious investors who missed the AI boom may not want to start a new position at these prices. Market sentiment may reverse suddenly and without warning. Relentlessly higher oil prices driven by global conflicts, such as in the Red Sea, might spark inflation fears.
Energy investors may hedge inflation risks by buying Occidental Petroleum (OXY), ConocoPhillips (COP), Exxon (XOM), EQT Corp. (EQT), and Valero Energy (VLO).
In the healthcare sector, investors may best avoid the speculative biotechnology market. Bluebird bio (BLUE), for example, plunged by 45.68% yesterday. The company took advantage of the stock rallying to over $5.00 in December by selling shares. The small, $125 million initial public offering of common stock triggered the selling pressure. BLUE stock closed at $1.32.
The healthcare plan sector is less volatile. Cigna (CI), Humira (HUM), and UnitedHealth (UNH) have strong prospects as they administer healthcare insurance.
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