The new year brings with it hope and optimism for investors, and there is nothing like being one step ahead of the rest by knowing what the future investing trends are to secure your 2019 portfolio. There are a lot of tempting possibilities out there, but which ones are not only available but are right for your investment temperament. Here are five for you to consider as the year begins to pick up steam.
1. Digital security
There is no doubt that 2018 was a year that had corporations and the average consumer very wary of the safety and security of their data. Facebook comes to mind, but the number of data breaches, including credit reporting company Equifax, affected millions of people and made almost everyone uncomfortable about going online. Many companies would take significant hits on their bottom line should confidence in data security drop even further, so looking for companies with new and more secure approaches to digital security has the potential to be a goldmine.
2. Electric cars
Only a few years ago the idea of a totally electric car was smirked at by both financial analysts and industry analysts. The price of oil has fallen significantly and the predicted rise to previous levels has not materialized. Despite this, people are still worried about the instability of the oil market. In response, the auto industry is now pushing hybrid cars in their new models. Give credit where credit is due here, as Tesla, while having its own set of problems, moved forward with its technology and the ideas have now been picked up by General Motors (NYSE:GM). The predictions are that by 2025 there will be at least 1 million more electric vehicles sold, with a sales estimate that exceeds $500 billion.
3. Companies that pay high dividends
This may seem like a no-brainer to some people but the skyrocketing stock markets from a couple of years ago had investors focusing on stock prices – and for good reason. But now that the bull market has apparently taken a break, investors will be looking for companies that are financially solid and will be paying equally solid dividends. One thing it will do is to put more cash in your portfolio, something that a lot of investors may have seen dwindle towards the end of 2018. Another positive to dividends is that picking the right companies will give you a certain amount of shelter should interest rates continue to rise.
OK, her we are talking about the cannabis industry, not the actual buying of it (and no, we’re not asking). While legalization in the United States continues to grow state by state, and there is talk of federal legislation making it legal in all 50 states, it is their neighbor to the north that is causing investors to pay particular attention to this industry. Canada has made cannabis legal for recreational adult use, opening up a brand new market for producers. Back to the United States, the estimate is for a $23 billion sales market in 2025, and that presumes no additional federal or state legislation. Canada’s share is expected to be just under $200 billion. Drive safely.
5. Artificial intelligence
Artificial intelligence is not just about robots, but has been increasingly used by Big Data for analytics. It is everywhere, starting with Amazon’s (NASDAQ:AMZN) Web Service that is one of the largest in the industry. One estimate has AI contributing more than $15 trillion to the world economy within the next 10 years. Depending on your optimism, the self-driving car uses a significant amount of AI in its design, so the development of self-driving cars (and trucks) has the potential for stocks such as Alphabet (NASDAQ:GOOG) to benefit, particularly with the development of their own company Waymo, which is investing in the self-driving models.
There are always hidden opportunities out there. Consider looking at investments that will generally increase your cash flow and are involved in cloud computing, a service that has the potential to explode once the digital security issues are resolved to the satisfaction of the public. The five trends listed here have something for everyone, many of them not requiring a significant amount of cash to get into. When new trends emerge, stop back to read on which of these have not lived up to their promise.