Okay, it looks like the stock market is hitting bottom. I predict it will start moving up or going sideways. Maybe not today, but fairly soon. And I expect tech stocks will lead the way.
As I've written previously, I'm extremely bullish on tech. Let's face it: the fundamentals are great and there's no ceiling on how high tech will go. Most of the major tech stocks had a rough week, but I predict they will recover and grow. Tech is the beating heart of our global economy, and I am highly optimistic over the long term.
From my perspective, defense and construction are the other sectors to watch. I have a feeling they will drive major gains in the market. Defense stocks such as General Dynamics, Rockwell Collins, Teledyne, Raytheon and Lockheed Martin have traditionally been good bets in turbulent times, and I'm assuming construction will have its own bull run when President Trump's infrastructure plan kicks into high gear.
Frankly, I think it would be good for the country to give tech a break and let some sectors of the economy do the heavy lifting for a while. I believe construction and engineering are poised for big gains. According to TheStreet.com, here are the top-rated construction and engineering stocks: Emcor Group, Granite Construction, NV5 Global, AECOM, Dycom Industries, Quanta Services, MasTec, Comfort Systems USA, Primoris Services and Fluor Corp.
You could argue that none of those companies are household names, but that doesn't mean you should ignore them. Last year at this time, how many people outside of the gaming industry had heard of Nvidia?
Another factor to consider: Today, the Internet of Things (IoT) is everywhere. A growing volume of infrastructure is smart. We have smart office buildings, smart stadiums, smart homes, smart roads, smart street lights, smart parking spaces, smart cities and smart nations. You can no longer separate infrastructure and digital information technology - they are now completely intertwined and enmeshed.
I see technology and infrastructure stocks moving on similar trajectories. For the foreseeable future, their fates will be tightly linked. From my point of view, the convergence of IT and physical infrastructure has a great future. I'm raising my glass to a long and prosperous relationship.
This is unquestionably the best time to be a technology executive. We're at a point of inflection, and we are uniquely positioned to determine the course of history for the 21st century.
At HMG Strategy, we're actively supporting the next great generation of technology leaders. We've created a truly global peer-to-peer platform to deliver world-class insights and ideas to the global audience. Join us at one of our upcoming summits and learn how to lead, reimagine and reinvent the modern enterprise to drive growth and create value in unprecedented times.