Building a good investment portfolio requires a lot of time, effort, careful planning, and consideration. Finding the right niche to invest in is not an easy task and it might be difficult to know where to search. One good way might be to start following the occurring, persistent trends which, when identified, could lead investors to the discovery of companies with immense growth potential. So here are some future investment trends one should watch out for.
1. Green Energy
In the green sector, the movement to energy storage dominates the market, along with wind and solar energy. Although the solar sector is typically a bit tougher due to massive competition, wind turbines have less of it. There are other areas of green energy that are abundant such as biomass, hydro, geothermal, waste-to-energy, and more.
2. 5G Wireless Network
The fifth-generation wireless networks or 5G will bring new standards for mobile networks such as higher data volume capabilities, faster speeds, and lower latency. They will bring about competition between service providers and help many applications such as virtual reality, autonomous vehicles, and mobile payments improve and make significant progress.
3. Financial Technology
Financial Technology or fintech for short is another investing trend that is worth keeping an eye on. The digitization of the services industry has been on the rise and financial technology stocks have become one of the hottest investments. Not only do they make traditional financial services more accessible, efficient, and affordable, but according to InvestoTrend, with the rapid adoption of online banking, digital payments, financial software, and other online financial services for consumers and businesses, fintech companies are only expected to continue significant revenue growth in the future.
4. Artificial Intelligence
Besides robots, AI is increasingly being used for analytics by Big Data as well. AI is empowering all sorts of industries and it is expected that within the next decade, artificial intelligence will contribute an estimated $15 trillion to the world economy. Half of these staggering economic gains will come from products containing AI technology, while the other half will result from improvements in labor productivity. Also, it is expected the technology will actually create more new jobs when compared to the ones it eliminates.
5. Electric Vehicles
Electric cars are rapidly growing in popularity and almost all major automakers are planning to launch their own versions. With the rising instability of the oil market, car manufacturers are racing to bring these vehicles onto the market. It is estimated that sales of electric cars will exceed $500 billion by 2025.
6. Cloud Computing
Usually stored in massive data centers, a global network of servers that act as one huge hard drive is known as the cloud. Its market is expected to grow to $331.2 billion by 2022, because the cloud takes processing and computing pressure off on-site servers, smartphones, or PCs, and gives users access to their data from any device.
Understandably, there is a certain disadvantage to investing in popular, fast-growing industries. Stocks in such segments tend to trade at extremely high prices. However, the investment might be very worthy if an investor is willing to hold onto the stocks for five years or a bit more.