The global economy seems to have breathed a sigh of relief for the first time in several years. The Chinese economy is probably resuming its previous pace of growth while Europe and the USA are giving us fewer reasons for concerns. Therefore, these factors allow stock market to become stronger last month.
What are the near-term prospects of the US stock market in general and its technological sector in particular. Let’s ask .
US Stock Market Prospects
Earlier this year, financial markets went on monitoring the political situation in the USA. Taking into account the fact that US politicians managed to compromise over tax hikes, the markets got a perfect opportunity to rally.
Still, shortly after that, some other old issues reemerged on the agenda, including spending cuts and the famous debt ceiling issue. While the former isn’t an urgent one, the latter definitely needs an urgent solution. Moreover, we saw this major issue affecting financial markets in August 2011. This was a negative impact.
At the same time, some international rating agencies started urging the US authorities to resolve the debt ceiling issue as soon as possible so as to avoid the recurrence of the scenario seen in August 2011.
Later on, the Fed decided to continue the implementation of its unlimited QE plan, thereby raising a wave of criticism. Ben Bernanke responded to it by saying that the Fed has all the necessary means to get rid of excessive liquidity quickly.
At this point, strong stats give us to understand that the economic recovery is still underway…
Time to Invest in Dotcoms?
While considering a portfolio of popular dotcom stocks, including Yahoo!, Google, Yandex и Mail.Ru, we would like to remind you that in the previous article we gave you ’s piece of mind. It concerned the necessity to restructure the portfolio by replacing the low-yield stocks with more profitable tech stocks.
Igor Vasev, a stock market strategist for , says that after the recent quarterly report, Yandex’s stock started rallying, thereby allowing them to increase its share in the overall portfolio.
Apart from those 4 dotcoms, they recommend paying attention to AOL. The company’s stock has been a major gainer since the beginning of 2013. It is recommended to wait till the company publishes its quarterly report in May. Then you can buy the stock if the financial results are pretty decent. At this point, we can buy small around $40.00:
Facebook is another dotcom stock to consider. The stock seems to be recovering after the failed IPO in summer 2012. Everything will clarify after May’s quarterly report. Until then you can try to buy small around $28.00:
If to take a look at the comparative chart showing their relative yields, we can define a mere frontrunner:
