Stocks rallied 29% in 2019. It was such a strong year some pundits think 2020 would be a likely time for the longest bull run in stock market history to pull back.

Not the case.

The truth is a year following a 20% or more gain is statistically pretty good, too.

That’s why it’s time to show you the best sectors to invest in for 2020.

Focusing on these could potentially give you the biggest chance at this year’s profit potential.

You heard the perma-bears crying for a correction in 2019, and it’s no different this year. But the data shows otherwise.

Interest rates are still incredibly low. Unemployment is at historic lows, especially for women and minorities. Housing starts are at a 13-year high.

Wage growth hit a nine-year high. A first-step trade deal with China was signed.

We could go on… the point is that this is a great environment for stocks to keep rising. The stock market is driven by supply and demand, and right now, there is nothing but demand dominating the scene.

So now that you have something to look forward to in 2020, here’s what you need to do.

How We Found the Best Stocks in 2020

It’s important to understand the way the market behaves during different parts of the year and under different interest rate conditions.

Money Morning Options Trading Specialist Tom Gentile pays close attention to these patterns. And it turns out some stocks are quite predictable during certain times in the year.

Our stock picks today come from the tech, healthcare, and financial sectors.

Of course, these will all behave differently at different times of year. But Tom Gentile has a special calendar to look at historical data and discover yearly patterns in stocks. This could give you a better idea of where the stocks will be on any given day.

There’s no better time to look into these sectors, and with Tom’s help, you shrink the margin of error.

Here are three stocks to buy in 2020 that could earn you a profit at least in the first half of the year…

The Best Sectors to Invest in for 2020

From the tech sector and the leading semiconductor group, Advanced Micro Devices Inc. (NASDAQ: AMD) is on top of its game.

The company is currently attacking the x86 CPU market on multiple platforms, including notebooks, desktops, and servers. And even though it sees little direct competition, it is valued at a fraction of other semiconductor juggernauts.

The stock has had a tremendous run, gaining roughly 65% in three months, so be prepared for a few bumps. But if it does pull back, it would be like getting it on sale.

From the financial sector, JPMorgan Chase & Co. (NYSE: JPM) shows strong performance and a solid business model. It survived the low interest rate environment and inverted yield curve with a diverse product mix not reliant on traditional bank lending. Now that the yield curve is more normalized, that will only add to JPM’s bottom line.

It was nice to read that Star Wars creator George Lucas was scooping up more shares of JPM to add to his already large position. But the real human-interest story is CEO Jamie Dimon confirming that he is not planning to step down anytime soon.

And finally, from the healthcare sector, there is Bristol-Myers Squibb Co. (NYSE: BMY). This big drug maker not only has a lower price/earnings ratio than the S&P 500, but it is a consistent dividend raiser. In fact, last month, BMY announced a 9.8% dividend increase, its largest increase in years.

And just last week, the FDA accepted the company’s marketing application for Opdivo (nivolumab) and Yervoy (Ipilimumab) medications for the first-line treatment of metastatic or recurrent non-small cell lung cancer.

It’s no secret that strength begets strength. That’s why we think buying the best of the best is the strongest path to profits.

— Money Morning Staff

Source: Money Morning