Best stocks to buy for the week ending Dec. 6, 2013: After eight straight weeks of gains, the Dow Jones Industrial Average and S&P 500 Index finally took a breather, finishing last week modestly in the red.
The Dow dipped 0.41%, or 66 points, to 16,020.20. The S&P 500 slipped 0.04%, less than one point, to 1,805.09. The tech-heavy Nasdaq managed to eke out a 0.06% gain, or three-point increase, to 4,062.52, good enough for a fresh 52-week high.
Despite the muted weekly showing, markets staged a strong rally on Friday thanks to a better than expected jobs report. Coupled with a recent spate of encouraging economic data – including gross domestic product Q3 gains that exceeded expectations – the picture for the U.S. economy indeed looks brighter.
That's why Money Morning believes markets will continue to rally in 2014. And last week we shared some of the best stocks to buy now to maximize your profits as we head into year's end.
Here's a recap:
- In June, Money Morning Defense & Tech Specialist Michael A. Robinson went against the grain and recommended tech stocks, saying they would surge in the second half of 2013. And since then, the tech-laden Nasdaq Composite Index has soared 16.73%, besting the broad-based S&P 500 Index's 11.5% gain. And Robinson remains a fan of tech. Here he names four tech stocks investors should put on their year-end shopping list. And in The Best Shadow Plays in Silicon Valley Right Now, Robinson discusses an innovative chip-design firm that has averaged 30% growth in earnings per share over the last three years and is poised for further growth.
- While indeed a fan of tech, Robinson is also bullish about the overall stock market. He forecasts a 15% gain for the S&P 500 in 2014, with the index rising to 2,065. Such a rise will not only take the broad-based index past the psychologically important 2,000 threshold, it will also propel it to the highest level in history. In Robinson's Stock Market Forecast for 2014, you'll not only find his market predictions, but also one small-cap tech stock he believes "will trounce the market averages in the New Year."