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December Market Predictions: Where is Best to Invest?

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Christmas is fast approaching and once again, many of us are preparing for some much-needed time away from work. However, the holiday season is also known for presenting some interesting investment opportunities. As this time period can be slightly unpredictable, many traders are curious to know which stocks and sectors are slated to perform well in the coming weeks. Although there are indeed no certainties, a handful of useful recommendations can prove to be invaluable for anyone who is looking to secure a short-term profit for the coming year. What do some of the experts have to say?

All About Tech Stocks

This first observation has actually changed very little since the beginning of the 2017 fiscal year. Fundamentals are seen as being quite strong and specific sectors such as mobile technology alongside SaaS (software as a service) have already proven to be strong sectors. Credit Suisse predicts that December and 2018 should continue to illustrate strong figures; ideal for tech enthusiasts across the board.

Is Apple a Potential Dark Horse?

While this technological powerhouse has always performed well from a long-term perspective, some analysts feel that we may see a slight dip in the share price towards the end of the year. In fact, certain predictions claim that a fall as much as five per cent is not out of the question. Still, we need to keep in mind that the majority of traders are looking to hold this stock for its longevity as opposed to a short-term return. Should we witness a more bearish pattern emerge, it may very well be wise to consider a purchase. These very same analysts feel that the second and third financial quarters of 2018 will see upward momentum. Therefore, a medium-term hold is certainly within the realm of possibility.

Keeping the Brexit Talks in Mind

This is arguably the most debated topic within the current financial backdrop. With storm clouds continuing the gather, there is more uncertainty in the air than ever before. Some news sources even claim that the European Union is already planning for an imminent “collapse” of Brexit talks. While this is a bit disturbing, the actual chances of this happening still seem to be rather remote.

We should nonetheless continue to see a weakened pound in relation to other benchmark currencies such as the dollar and the euro. This could once again represent an excellent buying opportunity from a short-term point of view. Many Forex traders will likely be interested in sudden movements. This will lead to increased liquidity and as a result, the chances of accruing a slight short-term profit are very real.

Are the Gold Bulls Back in Town?

Gold predictions have vacillated somewhere between neutral and slightly bullish for the past few months. Might we witness a breakout in December? Some experts feel that this could be a very real possibility. Some causal factors include:

  • The chance (albeit remote) of a Federal Reserve rate hike in December.
  • Cyclical selling exhaustion.
  • The end of the recent dollar rally.

Could we witness gold break through the resistance level of $1,300 dollars? The verdict is still out on this possibility and most investors are remaining conservatively optimistic.

Commodities in General

From a very general standpoint, commodities are always a relatively safe haven for investing during the volatile holiday season. As these will not experience the knee-jerk reactions often associated with the open markets, risk-averse investors are likely to begin to move a portion of their funds into this sector. Precious metals and dollar-backed assets should be particularly attractive.

We are not expecting any major waves between now and the end of December. Still, changes can and will occur within very short periods of time. One of the best ways to avoid being left out on the dark is to utilise the tools and analyses provided by CMC Markets. Whether you are a novice or a seasoned investor, there is no doubt that opportunities always exist. This holiday season could prove to be financially fruitful for those who correctly position themselves.