Economists are constantly speculating. This is normal because predicting current events and being first at something is what makes us profit. In fact, when something becomes popular, it is already too late to invest into it. This is why only small group of people becomes rich while the rest have to satisfy with crumbs. Among different predictions which we try to make, the most important one is prediction of industries that have high growth potential. By making well diversified portfolio, we are able to bet on one particular industry making bigger return than we would otherwise, if we made portfolio of an entire market.
According to market experts and Blanchard review, prices of commodities will still rise in the future. This is good news, not only for investors, but for entire mining industry as well. Let’s face it; companies which are performing exploitation always made big profits. However, like any other industry, they had good and bad periods. Given the current market situation and the fact that commodities became more popular than stocks or bonds, we can expect that entire industry will only increase in value. Furthermore, as the natural ores and fossil fuels slowly become depleted, work of these companies will become that much more important.
In following years, we can expect rise of agricultural companies. This is directly connected to global food shortage and the fact that countries will probably work closer together. Export of these goods will fuel entire industry. Furthermore, all related companies, such as tractors and agricultural machines, will probably become more profitable. People who invested in them can expect good returns. Also, given the growing health issues, increase of obesity, high cholesterol and high blood pressure, we can expect to see more companies that base their products on natural food.
Energy companies will also experience enormous growth. This especially pertains to those entities that are dealing with clean energy sources. Given the tendency to use renewable sources to generate energy, they will become extremely important as we start depleting natural resources. It shouldn’t surprise us if all companies start opening their own departments which deal with this issue. In that regard, we can imagine an economy where every business entity will be able to produce clean, renewable energy and use it for their production processes. Naturally, this means that they will be able to power their facilities with lowered costs and create better relationship with final consumers. As a result, it is understandable that financial instruments of environmental companies will rise in value.
Finally, most experts agree that industries such as pharmaceuticals and informational technologies will continue growing. Nowadays, we can finish most of our jobs over the internet. Shopping has become more of a nuisance as we are able to order most of the products on our home address. When we talk about pharmaceutical companies, aging population of the world will require more and more drugs. Due to this, consumption of both classic medicines as well as modern supplements will increase.
Industries of the future
October 29, 2015 by · Leave a Comment
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