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Last week at Money Morning our experts highlighted eight of the best defense and tech stocks to buy before 2015. These winners will start Money Morning Members off with strong investments in the New Year.
Two ETFs to buy have holdings in the booming U.S. semiconductor, information technology, software, and robotics sectors. Another two recommendations are heavily invested in Alibaba – one of the most sensational (and successful) stocks of 2014. And three ETFs to buy target defense companies that are equipped to shine through federal budget cuts in the sector.
You can find all of last week's tips and picks here in our latest list of the top defense and tech stocks to buy now.
Money Morning's List of the Best Defense & Tech Stocks to Buy Right Now
- On Oct. 19, a money manager told The Wall Street Journal investors should make sure they have exposure to emerging markets. The advice sent Money Morning Tech Specialist Michael A. Robinson reeling, for two reasons. First, popular emerging market ETFs like iShares MSCI Emerging Markets (NYSE Arca: EEM) and Vanguard FTSE Emerging Markets ETF(NYSE Arca: VWO) have yielded 1.5% and 1% losses over the past two years. That compares to a 36.5% gain for the S&P 500 in the same period. Second, Robinson says American tech firms – not emerging markets – are what investors should have exposure to right now. Tech has consistently been driving the market higher. That's why Robinson recommended this tech ETF to Money Morning readers. It's a broad play in the sector that covers IT services (23.88%), semiconductors (22.5%), and software (17.09%). And over the past two years, it has gained roughly 56% to beat the S&P 500 by more than 50%…
- Robinson's also a fan of a tech ETF with assets in the medical 3D printing market. You see, the medical and dental market for 3D printers is set to grow from $141 million today to $868 million by 2025 according to a recent analysis by market research firm IDTechEx. Robinson's play limits the volatility that comes from the excitement – and therefore overvaluation – that can happen in the 3D printing sector. (Take 3D Systems Corp. [NYSE: DDD], for instance. Shares recently slumped after the company slashed guidance for its Q3. Now, DDD is down more than 50% year to date, yet still carries a 109.5 P/E ratio.)