When I look out five years and try to make sense of where I want to have exposure, I’m thinking about companies that can weather storms, scale efficiently and don’t rely too heavily on labor. And that narrows things down real quick.
The good news? There are still sectors I want to own.
Not just trade — actually own. These aren’t necessarily the best performers this year, but they’ve got the kind of long-term setup I like: high margins, cash-rich balance sheets and major tailwinds.
Communication Services, Tech and Maybe Industrials
Communication Services (XLC) is still at the top of my list. If AI is going to keep driving market attention — and it is — then companies like Meta (META), Alphabet (GOOGL) and others in the space will keep benefiting.
These companies aren’t just advertising plays anymore. They’re also tech platforms, data miners, cloud providers and AI infrastructure — all rolled into one.
Same goes for Technology (XLK). Risk appetite is what drives this space. As long as people are chasing growth, this sector does well. Companies with wide margins and light labor dependencies are going to have a huge advantage in this cycle.
We’ve seen the MAG 7 lead the way, but if you can find the next tier of those kinds of names — with lower P/E or PEG ratios — you’ve got real upside.
Industrials (XLI) is on the bubble for me. It depends on how much we’re actually going to spend on infrastructure, defense and reshoring. But I’m not ignoring it. There’s a case to be made that in a more protectionist world, this sector could get more love.
The Ones I’m Not Buying Yet
Financials (XLF) might be up, but I’m still not sure what makes them great long-term. I know some people are pounding the table on banks, but I’m not convinced. Same with Utilities (XLU) — yeah, it’s been leading this year, but it’s defensive and slow. Not really what I want in a growth environment.
I’d rather wait for better entries or see more proof that these trends are sticky. I’m not going to chase anything just because it’s had a good quarter.
The point is: I’m thinking about where the money wants to go — not where it’s already been. If we get real dips in Communication Services or Tech, I’ll gladly step in and add. That’s where I still see a solid five-year edge.
I’ll see you in the markets.
Chris Pulver
Chris Pulver Trading
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P.S. How to Target Worthwhile Opportunities This Earnings Season
Top companies like Carvana, Uber, Disney, DoorDash, Fortinet and Occidental Petroleum — are all set to report on the very same day (May 7).
And it’s no secret that an earnings season like this one opens up opportunities for regular traders like you and me…
Now, I believe most traders are already positioning themself to ride the wave of these potential big moves.
But the truth is…
Most of them could be doing it all wrong.
Because in a market like this — one that’s been anything but calm — it doesn’t take much to end up on the wrong side of a trade.
One misstep, one bad read, or one move made out of hope instead of following a proven plan… and suddenly, a promising setup turns into a painful loss.
That’s exactly why I’ll be ditching all the so-called popular ways to target winners during this earnings season to focus on one straightforward approach…
One that has shown the power to predict whether a stock could pop… or drop with an astounding 85.4% accuracy.
Look, we both know no one can guarantee wins or prevent losses, but
I’ll be hosting my first-ever Earnings Workshop to break down how we’ve been able to predict these moves accurately…
And I won’t just be talking, you’ll see exactly how I’m putting my own money on the line to trade the upcoming earnings the right way…
More importantly, you’ll see how you can do it, too.
That said, the clock is ticking… and now is the time to start preparing ahead.
So, if you want to get all the details on how you can make this earnings season one of the best you’ve ever seen
From 1/29/25 – 4/13/25 on live trades the win rate has been 86% with an average return of 26.3% per trade (including winners and losers) and average hold time of 1-5 days. We cannot guarantee any specific future results, as there is always high degree of risk involved in trading.
