This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Biggest Investment Themes for Second Quarter

BOSTON ( TheStreet) -- After last year's triumphant rebound, the stock market was wheezing in the first few weeks of 2010. With the labor market sagging and consumer spending on hold, U.S. investors asked themselves "Now what?"

On Feb. 8, every industry in the S&P 500 Index had fallen at least 2%. By the end of March, the U.S. benchmark made up that loss and kept rising, finishing the first quarter up 5.4%. Global manufacturing heated up, business spending strengthened, and companies began to hire again, albeit slowly. Investors piled in.

Industrial companies gained an average of 13% in the first quarter, and financial and consumer-discretionary firms increased 11%. Only utilities, considered among the safest investments, fell.

Banks and other financial-services companies have prospered since the government made it clear the most important among them are "too big to fail." They've been given every advantage.

The other top-performing industries show more bullish signs. Gains in the industrial and consumer-discretionary sectors signal that investors are betting on so-called cyclicals as the U.S. pulls out of the deepest recession since the 1930s.

To be sure, the economy likely will continue to sputter for some time, and stronger growth will bring with it other challenges. Investors should expect mean reversion -- the stock market's current pace probably will slow.

On the following pages are three of the largest investing themes for the second quarter and how to play them.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SI $0.00 0.00%
BBY $38.40 -2.59%
CAT $79.88 0.02%
DIS $105.26 0.25%
GE $24.81 -0.40%


DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs