When thinking about managing one’s personal finances, the concept of how to invest for a long period of time, say retirement, is often a primary concern for many. The options are endless in terms of the type and range of securities to invest in.
For those considering equities, I’ve got three powerful trends I’d suggest investors pay attention to when considering which companies or sectors to invest in.
Each of these three long-term secular growth trends happen to be related to the technology sector. With the NASDAQ having officially hit new all-time highs recently, brushing off COVID-19 recession concerns, investors can easily see the sheer power of these trends. I expect continued long-term outperformance from these key sectors, despite the relatively high valuation multiples underpinning many of the companies in these sectors right now.
The first mega-trend I’d advise investors to keep an eye on is artificial intelligence. There are many applications of this, and many companies are only starting to dabble in this arena, so choose wisely. The second area of focus would be electrification and digitization.
The world is moving away from fossil fuels and toward electric/renewable options, and you should, too. The third area of focus is virtual reality. This includes everything from video games to various virtual products mixing with real world. Picking up shares of companies offering these type of services is where I would start for growth-oriented investors.
Invest wisely, my friends.
