Major stocks are expected to see an average increase of 10 percent in 2011, according to a recent Barron’s report. The study found big-cap shares like Exxon Mobil Corp, Wal-Mart Stores Inc. and Pfizer Inc. will be among those leading the way in increases this year.
2011 to Mark Another Year of Gains
Barron’s noted in a Sunday cover story that the U.S. stock market just logged its second-straight year of gains in 2010. The market was lucky to bounce back immediately following the crushing losses stocks saw after the crash in 2008.
While the business weekly could not confirm the market would see another winning year, it did note “the fundamentals, from an improving global economy to low interest rates, strong corporate balance sheets and inexpensive equity valuations” point to this possibility.
Top Stock Picks for 2011
In addition to Exxon Mobil Corp, Wal-Mart Stores Inc. and Pfizer Inc., the business weekly disclosed some other top stocks that were likely to do very well in 2011. They include:
- JPMorgan Chase & Co
- General Motors Co
- Cisco Systems Inc.
- United Continental Holdings Inc.
- Barrick Gold Corp
- Entergy Corp
- PepsiCo Inc.
These stocks in particular are expected to increase by as much as 20 percent this year. Barron’s explained these market giants will finally best smaller stocks after lagging for much of the past decade and therefore, are good ones to focus on when choosing investments.
These choices are such a good bet, in fact, the business weekly said they should do well even if stocks overall don’t increase as expected: “If stocks surprise the bulls and have a bad year, these 10 ought to perform better than the averages.”
Some experts have already predicted that many people will likely move away from bonds and toward stocks this year since bonds aren’t predicted to be as profitable or reliable as in previous years. So if you’re looking to make the switch, you now have some major money-makers to keep your eye on.