4 Stocks Living In a Winter Wonderland
The winter months can be a dicey time for equity markets. There’s the Santa Claus rally, year-end euphoria in the New Year’s countdown, and tax-induced selling through January and February. The atmosphere is thick with speculation on what the next big trends will be and which companies will capitalize on them. Portfolios can shift and re-balance for the coming year rapidly, and based on the market’s mood swings it looks like investors in New York, the Northeast, and the Midwest are getting a case of cabin fever (thanks a lot, polar vortex).
Much of the New-Year’s euphoria is behind us, but there’s still a lot of vapid conversation to be had about which stocks will do well and which won’t. Will 2014 be another good year for financials? What about big oil? Analysts at Goldman Sachs thinks the industry is finally getting ready to shift up a gear after a few sluggish years. Twitter (TWTR) is king of the tech parade — or bubble, depending on who you ask — and the perennial debate over the future of social media is in full bloom.
But, as the ever level-headed Warren Buffett has said, “you don’t need to be a rocket scientist.” When winter rolls around and massive swaths of the company get wrapped up in a blanket of snow and ice, there are a couple of well-understood seasonal trends — call them bandwagons — that investors can jump on to if they’re looking for a little momentum. Here are five companies to take a look at, each operating a business that uses winter to its advantage.