Elections, terrorist attacks, federal rate hikes, changing consumer attitudes…
… they’re all lining up to make 2016 critical for your portfolio.
Bottom line: You must find the right stocks to build wealth. Here are some names to know.
But before we get to our names, let’s look at the landscape…
First, the Federal Reserve Bank is widely expected to raise rates. Many investors are waiting for the hike before committing more capital.
The hike will make money more expensive, but not much. However, it will also curb inflation and keep consumer goods prices level.
If the Republican party nominates a hard-right candidate, most polls predict an easy Democratic win. The Street, however, loves Hillary Clinton.
Though many are worried about what the election could mean overall, there’s one thing that Wall Street really likes: gridlock. Without any major policy shifts, investors can focus on their investments. Regardless, we won’t know what will happen until the first Republican primaries in March.
The U.S. will change, as will the world. Pay attention to President Vladimir Putin in Russia and the upcoming vote by Britain on whether it will exit the EU. For most U.S. traders, however, these are minor concerns.
The big shifts are coming in the ways consumers will act as the economy continues to improve, and what that means for both healthcare and consumer goods.
Millennials and boomers are now a force 160 million strong, and they both want different things. Boomers are now downsizing and getting older, while millennials are looking at buying experiences, not stuff.
With that, the new frontiers in healthcare will be in consolidation as companies look for economies of scale and size to service boomers.
On the other side, though Apple is often sucking all of the profits out of the room, others like Micron, and yes, even auto companies that are embracing tech like Ford and General Motors are important to watch, as they cater to millennials.
The big gainers could be in the travel market, as both hotel chains and airlines cater to millennials’ needs to see and do more than their generation-x counterparts.
Then, of course, the big guns that are driving the growth on the S&P 500 Index in an outsized way—Facebook, Amazon, Netflix, and Alphabet—are all seeing acceleration in their revenues.
Because they’re such behemoths, indexes are seeing a rise thanks to their high values, which should continue.
Now let’s get started with our investments…
1. Alphabet (GOOGL)
Like other tech stocks, Alphabet — best known as Google — should continue its strong values going forward.
2. Amazon (AMZN)
One of the hottest tech stocks, Amazon is moving into a more consumer-focused and cloud model. Expect to see continued high value.
3. American Airlines (AAL)
Again, millennials aren’t buying things, they’re buying experiences, and a big one is travel.
4. Apple (AAPL)
No other company makes money on smartphones. About 40 percent of all of the profits in the smartphone business go to Apple. That won’t change anytime soon.
5. Celgene (CELG)
Boomers are getting older, and with age comes many diseases. Celgene makes therapies for cancer and inflammatory disorders, and many ratings agencies also consider it a buy.
6. Cheesecake Factory (CAKE)
Many are looking at moving up to low-end luxury. With its upscale casual image, that’s CAKE’s sweet spot.
7. CVS Health Corp. (CVS)
Again, boomers. As they start buying more drugs and seeking more care, CVS is positioning itself as not just a drug store but a healthcare center with clinics and more.
8. Expedia (EXPE)
Expedia hits the sweet spot, too, for millennials as they look to buy experiences—and they want to do it on their phones and book themselves.
9. Facebook (FB)
One of the big guns of the tech world, the company has been seeing growth in its ad sales as more people are using the service.
10. Ford Motor (F)
Not an obvious choice, but its fully-outfitted trucks are a profit driver and its commitment to tech is attracting new buyers.
11. General Motors Co. (GM)
For the same reason as Ford (mainly margins built from tech extras), watch GM.
12. Gilead Sciences (GILD)
While some drug makers have stumbled in their quests to bring new drugs to market, Gilead looks poised to make big gains.
13. Hilton Worldwide (HLT)
Again, experiences. As millennials travel, they’ll need somewhere to stay.
14. Micron Technology (MU)
As tech devices seem to multiply, each will need a memory chip. Micron makes the chips that store all of the pictures that boomers take of the grandkids, as well as power the phones that millennials use to book those trips.
15. Netflix (NFLX)
Nobody wants rabbit ears — or, increasingly, cable — anymore. Netflix is gaining viewers, leading to its highly valued stock on the street.
This post originally appeared on mainstreetinvestor.com.