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Rating the monster tech stocks: two to sell, two to hold, and two to buy

“Buy the biggest, fastest rising companies,” is not a piece of stock advice you would get from Uncle Joe, nor even from an investment expert such as Warren Buffet, but in 2017, you could have beaten Warren Buffet’s returns (and almost certainly those of Uncle Joe) by doing exactly that. Not in my memory, and I’ve been in this game for some 22 years now, has the field been dominated by such a small cadre of such (seemingly) unstoppable giants. For investors, it raises a fair question: Instead of trading in smaller stocks, or attempting to own the whole market, might I not be better off just moving my money into the not-so-secret-six and letting things roll ‘til further notice?

I should be dismissing such a silly idea, an idea that would clearly leave you without the need of market analysts such as myself, but in truth, I’ve worse ideas, and lot’s of them. This trend will reverse, eventually, as all trends do, but will it happen this year? That’s anybody’s guess. But Being one small part of anybody, here’s mine. I think you’ll do considerably better by holding the stocks below for the next year, even the ones I’ve rated sell, than you would do by holding the S&P 500. The reason is that particularly bad years for any of these companies seem unlikely to lead to stock price drops of greater than 20%, while particularly good years for any one of them could lead to stock price gains of 50% or more, though in truth I find that scenario enormously unlikely in the case of Apple (AAPL).

Remember to treat these ideas as just that, ideas, and do your own research before making any investment decision.

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Julian Close

Julian Close became a stockbroker in 1995. In his 20 years of market experience, he has seen all market conditions and written about every aspect of investing. Julian has also written extensively on corporate best practices and even written reports for the United Nations. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. You can see closing trades for all Julian's long and short positions and track his long term performance via twitter: @JulianClose_MIC.