Jim Lowell, Editor-in-Chief of Fidelity Investor, discusses the Nasdaq reaching above 5,000 for the first time since 1999, as well as the best sectors and regions to put new money to work.
Jim maintains that the Nasdaq has matured since the last time the Nasdaq reached above 5,000 in 1999, and he is confident that the Nasdaq will be break out above 7000 in a matter of three to five years.
One industry that Jim believes will push the Nasdaq to higher highs: Biotechnology. Biotechnology is a sector that Jim believes will be propelled by long-term growth and innovation, despite near-term valuation concerns.
The longer term trend for this sector looks positive, thanks to greater demand from consumers across the globe who are calling for more innovative and less invasive health care—which is exactly what biotechnology is all about.
In addition to biotechnology, Jim also believes Europe is full of attractive investing opportunities. The instability found there creates great valuations for good proven stock pickers such as Jed Weiss, manager of Fidelity International Growth Fund (MUTF:FIGFX). Top holdings in FIGFX include Nestle SA (ADR) (OTCMKTS:NSRGY) and Anheuser Busch Inbev SA (ADR) (NYSE:BUD).
Another place to put money to work: Japan. Low energy prices coupled with good valuations and a gargantuan stimulus plan makes Japanese small-cap and mid-cap companies something to keep an eye out for.
Check out the video above for more. (At 2:03, 5:11, and 6:42)