In today’s world, it seems as if circumstances are changing each and every day. Should you be an investor, this can actually mean good news to you and your portfolio. As events unfold in the U.S. and around the world, knowing how these events will impact certain industries can give you the insight needed to make investments at just the right time, ultimately resulting in more profits for your portfolio. If you’re on the hunt for the hottest industries in which to invest your money, here are four that merit serious consideration.
Biotechnology
When it comes to investing in biotechnology based on current events, many focus their interest on things such as investing in anything related to curing diseases such as COVID-19. Though this type of investment can be lucrative and helpful, considering investing in a narrow venture such as a cure, can be short-sited. For many investors like yourself, this should mean closely examining the biotechnology industry. By the end of this decade, this will be a nearly $3 trillion industry annually. Along with seeking treatments and cures for COVID, biotech companies will be focusing heavily on cancer treatments, genetic diseases and conditions, and much more. Cures are just a facet of the industry. Things like protective facemasks, hospital technology, home care technology, and other biotech facets should be considered when you are interested in expanding your portfolio into the biotech industry. Even ways of distributing genes from one cell to another is becoming more common in biotechnology companies.
Sustainable Industries
As more people become concerned about climate change and other environmental issues, companies that are committed to sustainability are becoming more popular choices for smart investors. If you prefer buying products from companies that are socially responsible and committed to green technology, your portfolio should include sustainable companies. Arguably the fastest-growing industry in corporate America today, it is expected to be worth as much as $75 billion within the next decade, and have an annual growth rate of well over 20 percent. Additionally, there is a world movement with accords and laws that are providing support for companies that are sustainable or helping with making sustainable products. Things like updating manufacturing plants to decrease the carbon footprint such as solar electricity are often providing those businesses with a tax break in many countries. This means that companies providing those solar products are in higher demand and thus it is likely to continue growing. Many sustainability companies are actually under the umbrella of a different company. With this being the case, it’s ideal to do your research to ensure other companies aren’t competing with that of companies in your current portfolio.
Packaging Manufacturing
The dependence of companies on manufacturing companies continues to rise. This is especially true for packaging since every product on the market requires some sort of packaging to get any sales. Even with shortages in some supply chains, the packaging industry is continuing to grow. Sterling Manufacturing, for example, is a company that provides solutions for packaging. The packaging of a product has become one of the main ways that businesses differentiate from other companies. This means that more and more companies are looking for packaging solutions to make customers feel like the products are more premium feeling. The packaging is also part of the decision-making purpose when it comes to customers choosing between two or three brands. Because of this, the demand for better and better packaging will likely continue to grow. Packaging such as the way that products are held in the box as well as the design of the packages on the outside is big aspect of that process. However, a company that focuses on the design of the package is likely not as sustainable of an investment compared to that of the actual manufacturing of the packaging itself. This is likely due to the fact that design companies come and go but the need for packaging continues to grow and become more important. Some packaging that is becoming more popular is the ones that also use sustainable packaging or recycled products. A company that can put in their marketing that they are a sustainable company behind the scenes while also providing sustainable products such as 100 percent recycled materials for both the product and the packaging is becoming more important than ever. Thus, a company that provides sustainable packaging will likely be a high-growth investment for your portfolio.
Information Security
Considered to be one of the greatest security threats to the U.S. and other nations around the world, cyberattacks are becoming much more common in today’s world. Whether it’s an individual hacker or a coordinated effort by a nation, a cyberattack can wreak havoc with financial markets, electrical grids, and much more. Because of this, information security is an industry that is becoming coveted by investors. As cloud computing becomes an essential component of more and more companies, organizations, and government agencies, new technologies will need to be developed to combat cybercriminals. Within only the next five years, expect this industry to be worth almost $350 billion and growing at a rate of more than 10 percent per year.
When you take a closer look at these industries, it won’t take you long to realize you are investing your money in a smart manner. Whether you invest solo or work with a broker, it probably won’t be long until you start to see your portfolio grow quicker than you imagined.