The investment categories you want with the returns you desire
An ever-changing array of offers across multiple industry sectors
E-Commerce
No one can deny that e-commerce is now an embedded part of our lives. Hidden behind each product is a complex world of marketing, data, and transactions with suppliers, customers, and cybersecurity. Before 2020, e-commerce was already becoming the future of shopping and the lockdowns only fast-tracked the inevitable. Electronics, fashion, travel, and downloads will continue to play a prominent role, though other segments such as food have also become increasingly important. Experts agree that this will be a lasting change. Retailers who don’t have a digital presence will be left behind and companies who are capitalizing on the trend are attracting investor dollars.
Oil and Gas
Energy fuels our lives; heating and lighting our homes, fueling our drive to work, and more. We require many types of energy including traditional oil and gas which are not going away any time soon. Seasoned investors have historically won big with the exploration, refinement, transportation, and innovation that fuels the oil and gas industry. There are naysayers, but keep in mind that even after the industry suffered a major crash 6 years ago, it rebounded strongly in 2018 due to improvements in the efficiency of operations. Excellent strategies in financial management led by operational technology innovation leaders are working to win back investors.
Mining and Precious Metals
While mining is steeped in old-world mystery, there is much more to precious metal investing than coins and bullion. The industry is on the rise, fueled by the fast-paced growth of technology and the manufacturing of computers, electronics, catalytic converters, and batteries, which rely on gold, silver, platinum, palladium, and lesser-known metals. Investors enter the market with equity stakes in companies involved in all aspects of the industry including the mining process, innovative technologies, exploration, refining, and manufacturing. Precious metals are a portfolio diversifier; carrying intrinsic value, inflationary protection, and are sought as “upheaval insurance” against political unrest.
Transportation
From traveling on foot, horses, boats, cars to airplanes, man’s need to travel has been a lesson in evolution. We see cities forging ahead with new technologies to lay the groundwork for seamless mobility unlike never before seen. There is a disruption in the sector due to COVID, but progression in technology is inevitable, and with it the opportunity for savvy investors to make a buck. We will see more environmentally friendly mobility in the coming years and a focus on the environment, social changes, and governance (ESG). The demand for sustainable transportation may soon outstrip supply, so companies are working to respond to the opportunity.
Finance
The financial sector is one of the largest portions of the S&P 500 and a key indicator of a strong economy. It comprises a wide range of industries that provide financial services to commercial and retail customers; including banks, investment funds, insurance companies, and real estate firms. Most of its revenues are generated from loans and mortgages which thrive during low-interest-rates, as economic conditions open up the doors for more capital projects and investment. Both Main Street and Wall Street rely on brokers, financial institutions, money markets, REITs, and many other services that keep the economy stable.
Food & Beverage
One silver lining to COVID is that investors are bullish about the food and beverage sector, as it has been bolstered by increased at-home consumption. According to the International Food Information Council, 85% of Americans have changed their eating habits and 60% are cooking food at home more often. One out of three people said they eat snacks more. These changes resulted in increased individual spending on food and beverages, which in turn meant more opportunities for investors. Timing is right to increase investment in the food and beverage sector as Americans are consuming more and innovators vie for a bigger piece of the pie.
Real Estate
Historically one of the most conservative and low-volatility assets, Real Estate can enhance the risk-return profile of a portfolio. Considered a “safe harbor” investment, it has achieved a new-found appeal due to the low cost of capital and new ways to use self-directed IRAs for tax-mitigated investing. Diversification and protection are key benefits of direct real estate investing due to the sector’s low correlation with other asset classes – meaning when stocks are down, real estate is often up. Many investors who value hedging inflation and the power of leverage have decided to partner with developers in Joint Ventures to provide increased liquidity and passive income.