Few folks like the number 13. For reasons that go back into the mists of time, 13 is considered unlucky, though few people know why.

Nevertheless continuing in my tradition of being a contrarian—we are dating this issue on the 13th of July—I’ve got 13 new stock names that could outperform in the second half of 2019. As I’ve noted before, I’m bullish on the next six months. More on this below.

Employing seasonality is a tactical approach to picking stocks, but no less potentially remunerative for it. I’ve identified eight potentially outperforming industries to watch in the second half of 2019. The methodology is straightforward: I calculated the average returns of all GICS 4 sub-industries since 1990 and then identified eight sub-industries that had the best outperformance during the June 30-Dec. 31 periods of each year.

The list of eight are: internet and direct marketing retail; home improvement retail; footwear; internet services and infrastructure; household products; data processcing and outsourced services; investment banking and brokerage; and finally railrods. Commonality among the first five would seem to be that they are consumer facing, and with interest rates low, consumers might have more money in their pockets to spend. For example, footwear se...

Unlock this article with a FREE 30-Day Trial!

An FSI Pro, or FSI Macro subscription is required in order to access this content.

*Free trial available only on a monthly plan

More from the author

Disclosures (show)

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 2/2

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 2 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In

Want to receive Regular Market Updates to your Inbox?

I am your default error :)