Stock Market Reflecting High Gas Prices

Published by admin | Filed under Finance Connect

The gas prices continue to soar and the stock market is showing that. The high gas prices will not be going down soon and many travelers will have to face this high cost on their trips this summer. We should see some declines this fall, but the summer looks like a record breaking season for gas prices.

The stock market will not improve this summer while these high oil prices continue to rise. I do think it’s a buyers market right now and will be for the rest of the summer. No one should be investing too heavy, until we can clearly see the bottom at some point. There is no bottom limit in sight right now and buyers should use caution.

Retail stocks and pharmacy stocks should be ok for this summer, but only buying small portions to add to your portfolios. My outlook on the pharmacies, drug makers and the drug stores all look great for 2008. If you haven’t added a medical stock to your portfolio yet, look for the big pharma drug companies and some of the drugs stores like Rite Aide, Wal Greens and even a place like Wal Mart for taking advantage of the drug stocks and the retail sector that looks promising for later on in the year.

Banking stocks will take their lumps and bruises, just like the rest of the financial sector will this summer. Your financial stocks are safe bets and you should earn a little money in 2008 from them and I do like the big banking stocks as a place to hold your money, until the summer is over or until gas prices go back down some.

The energy sector should be avoided and I would not recommend any energy stocks this year and they need to be viewed like the airline stocks have been over the past few years. I understand the huge profits they are generating right now and many shareholders have been award nice gains over the last 30 months. It’s just too volitale to get in the energy stocks right now and I would even go as far to say that you sell all your energy holdings right now, if you’re up on them and look to reinvest that money into a large banking stock or go ahead and get in on the drug and retail sectors that will have a nice finish in 2008.