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5 Surging Sectors To Invest In
Investing is in vogue at the moment after a number of influencers have taken to social media to espouse the merits of playing the financial markets. Investing as you will know is not a simple case of getting your timing right and following the tips of a celebrity on TikTok or Instagram.
The keys to good investing are time and research, without focusing on those two aspects any investment is doomed to failure. Fortunately for you, we’ve done the hard works in term of research – finding five industries that will make a great medium to long-term investments.
Online Gambling
If you were lucky enough to have invested in online gambling ten years ago you would be sitting on a fortune now. Fortunately, though, the fun isn’t over when it comes to online gambling and there is still plenty of money to be made for investors.
The UK is the standard bearer of what can be achieved by the online gambling industry if it is fully licensed and regulated. The country was one of the first to fully legalise online gambling and is now reaping the rewards.
Last year the industry made just over £5 billion in revenues in the UK with further growth forecast for the coming year. Companies like 888 Holdings with their casino and online poker products are growing steadily and bringing investors decent returns.
888 are also showing an interest in emerging online gambling markets such as North America and Africa. Investing in 888 could turn out to be an astute bit of business in the years to come.
Biotechnology
So important was physics to the 20th century that economics began to not only invest heavily in the science but to also take a physics-led approach to its understanding of the economy.
Companies specialising in biofuels, crop production and healthcare will become the most important in the world. Obviously, companies with a foothold in vaccine production will be the most profitable in the short-term.
However, for medium to long-term returns seek out companies that are innovating in the technology that will allow us to slow down or reverse the effects of climate change.
Fossil Fuel
BP, Shell and Texaco are undoubtedly poor investments in the short-term thanks to the negative PR that they are receiving from climate activists.
These companies need not be persona non-grata for the foreseeable future though as they can play a pivotal role in reversing climate change in future generations.
As new, eco-friendly energy sources are found there will be a growing need to make them accessible for all.
Huge oil companies already have the existing infrastructure to carry energy to the masses and should they choose to adapt to the new world, will become increasingly important.
Now could be the ideal time to invest in fossil fuel companies with their stocks low and unfavourable as in 10 years, when newer more eco-friendly energy sources are found or created, they will play a vital role in developing it.
Entertainment
An end is now in sight to the Covid-19 pandemic and it is now time to start looking at what industries will flourish in a post-pandemic world.
In the 1920s after the Spanish Flu had finished ravaging the world, the global economy boomed. The Roaring Twenties as they were known saw a number of industries flourish as consumers were eager to spend their money after being confined to their homes.
The 2020s should be no different and one industry that looks set to reap the rewards is entertainment, particularly the hospitality sector.
Bars, restaurants, and nightclubs will be heaving with customers when normality is resumed, so investing now in entertainment is an absolute must.
Construction
Former British Prime Minister Margaret Thatcher was a major proponent of home ownership, encouraging citizens to buy their homes with a series of financial incentives in the 1980s.
An unintended long-term consequence of Thatcher’s policies is the housing crisis that is currently being experienced in the UK.
Thatcher’s policies may have encouraged low-earning families to invest in bricks and mortar, but they also encouraged wealthy individuals and companies to greedily gobble up cheap and affordable housing.
The result now is that in the UK and many other countries rents are so eye-wateringly high that many younger people can not hope to buy a home like their parents did.
Overcrowding and almost criminal renting rates have been put further under the microscope as a result of the pandemic. There is now a serious will by most major governments to address the housing crisis and invest in cheap and affordable housing for their citizens.
This could see bricks and mortar house prices fall, but that doesn’t mean you shouldn’t invest in real estate. Someone will have to build all of these new houses, so if you invest wisely in construction, you could see some very substantial returns over the next 10 years.
