From Taki Tsaklanos: Late last year, InvestingHaven’s research team identified 4 Stock Market Sectors Which Could Outperform In The First Months Of 2017. As the first month of 2017 is coming to an end, we are following up on the stock market sector view and present readers with the most fascinating sectors so far.

The building and building and construction stock market sector has an incredibly strong setup. Investors really get excited if a market breaks out after a long consolidation period. In the case of the building and construction stock market sector the consolidation took 3 full years, and in November there was a confirmation on the breakout. As long as the markets remain in a ‘risk on’ mode, this stock market sector will continue to outperform.

The US industrial machinery stock market sector looks truly fascinating. This sector broke to all-time highs in November, and continues its rise in the first weeks of 2017. Since last February, the sector is up 50 percent. Even with that, there is still significant upside potential.

The tech multimedia networking stock market sector is clearly outperforming the technology sector and broad markets as a whole. Since last November, this index is up more than 10 percent. The companies in this sector are Juniper Networks, Motorola, Cisco, and the likes.

Last but not least, the water stock market sector is doing great in 2017. After a confirmed breakout in November last year, the index is now almost 20 percent higher. This stock market sector entails companies like IDEXX Laboratories, XYLEM, Idex Corp and the likes. There is certainly more upside potential in 2017 given this chart setup.

The First Trust ISE Water Index Fund ETF (NYSE:FIW) was unchanged in premarket trading Friday. Year-to-date, FIW has gained 4.02%, versus a 2.59% rise in the benchmark S&P 500 index during the same period.

FIW currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #3 of 6 ETFs in the Water Equities ETFs category.

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This article is brought to you courtesy of Investing Haven.

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