Who's Got the Top Stocks for 2013?
This annual roundup of stock gurus and money managers might not get every stock right, but it does usually pick the trends for the new year.
M&T has got two advisors selecting it as their top pick, and they both point out that this is a bank that did not need any help during the financial crisis. It didn't cut its dividend in 2000 and 2009 when other banks did, and they've reported quarterly profits every quarter for 37 ongoing years. That's a standout in the banking sector.
As you point out, it's interesting that the advisors in general are moving toward a position where they're starting to take a bullish long-term view of the banking sector.
Gregg Early: It's been quite a long time since something like that has happened.
Steven Halpern: Four or five years since the stocks have risen up on the top picks list.
Gregg Early: Is there anything noticeably absent from the list this year?
Steven Halpern: Yes. In fact, it was interesting: I went through last year's list to try to compare it with this year's, and the No. 1 sectors on last year's list were retail and consumer products, and the advisors were correctly forecasting that there would be a rebound in consumer activity, but those stocks are gone from the list now.
I looked through and there wasn't a single recommendation for a retailing outfit or a consumer products company. What we have seen though is that maybe what the advisors are portending is that there's been a shift from strength in the consumer sector to that now being reflected in the overall corporate sector.
This year, we're seeing a huge move in the advisors toward large-cap technology, which would indicate a strengthening overall corporate sector. Here we're seeing picks for Cisco, Google (NASDAQ:GOOG), Intel (NASDAQ:INTC), IBM (NYSE:IBM), Oracle (NASDAQ:ORCL), Yahoo (NASDAQ:YHOO). Really a wide list of top-tier large-cap technology stocks that were absent from last year's list, but now are popping up as favorites of the advisors.
I'd also add to that that Apple (NASDAQ:AAPL) is a recommendation of two of the advisors despite negative press that Apple has gotten lately and the pullback in price. Two advisors are picking it as their top play for 2013.
Gregg Early: Yeah, it's still early for Apple. We'll see. We'll see how far that goes. It sounds like there's a trend-I mean it sounds like a lot of the advisors are expecting capital expenditures to be up, which would be an improving economy to a certain extent.
Steven Halpern: Yes, yes. So it looks like they went from the level of improving consumer to an actual improvement overall in the corporate outlook.Below, find some more great investing and trading content from MoneyShow:
The Best of the Big 20
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