Our traders offer 5 major market predictions for the new year. How should you trade?
Following is a summary of their main points.
Prediction:Pfizer makes a major buy in biotech and trades higher. “They don’t have a pipeline but they have a balance sheet and I think they will make a major acquisition.”
Brian Schaeffer (Van Der Moolen Capital Markets Managing Director)
Prediction: Health care stocks rise on valuation. “I think Big Cap Pharma will lead the way next year. With this sort of yield and reasonable valuations, I’m a buyer.”
Carter Worth (Oppenheimer Chief Market Technician )
Prediction: China, India economies keep chugging, but stocks finish lower. “These are bubbles and I think they will top out.. and I predict stocks end lower in the Shanghai Exchange and Bombay.”
Prediction: Wall Street stocks climb out of credit-crunch. “I doubt the financials will have as much turmoil as they had in ’07… I think we’re going to see a strong performance in a volatile market.”