This week’s Sentiment Survey special question asked AAII members what sectors or industries they are currently favoring. About 35% of respondents favored the health care sector, 20% were optimistic regarding technology, approximately 17% were bullish regarding energy, 10% preferred financials, 6.8% liked consumer staples, 5% favored industrials, 3% were for consumer cyclical and 2.6% were bullish towards basic materials. Within each of the sectors, there was favoritism shown toward biotechnology, pharmaceuticals, oil and gas, real estate, and banks. There were some mentions of emerging markets and European stocks as well.
Here is a sampling of the responses:
- “Biotechnology, pharmaceuticals and oil and gas.”
- “I like consumer discretionary, because those in upper income brackets will spend consistently. I also like manufacturing, as long as the companies are sound.”
- “Big pharma is my favorite sector right now. The introduction of biosimilars is heating up the competition. Let the winners run.”
- “Oil has been beaten down quite a bit in the last year. Some snap back is likely, in my opinion.”
- “Health-related industries. Demand for services and/or medications when needed does not go down with the fluctuations in the overall economy.”