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6 Stock Sectors to Watch Over the Next Year

By: Ryan Tyson

 

Stock Sectors to Watch Over the Next Year

When considering your future investments, it’s always worth looking at which sectors are likely to be the most lucrative in the coming months. For those who are considering a move into day trading or want to diversify their portfolio, there are some sectors to keep an eye on.

Technology

As is usually the case, the rapid pace of technological advancement means that there are always opportunities to realize an impressive return on an investment in the sector. The aging population and the increase in emphasis on personalized medicine have provided plenty of opportunities for healthcare technology companies to gain market share and offer impressive returns to investors.

Automotive

As one might expect, there is a significant cross-over between the technology and automotive sectors. Vehicles are becoming increasingly reliant on technology for the latest developments in energy efficiency and engine management systems, not to mention refining of the basic elements of vehicles to improve every aspect of their effectiveness.

Real Estate

Property is often touted as a relatively secure investment, especially compared to more volatile stocks, but it’s worth looking beyond the traditional residential real estate options and exploring alternatives. Real Estate Investment Trusts allow those who don’t have a huge sum to invest to get all the benefits of property ownership. There are some major players investing in hotels at the moment and even competing with the likes of Airbnb in a market where the home-sharing site has been threatening to take over.

Consumer Services

Although it can feel risky to invest in a company where without a tangible end-product, consumer service companies are becoming an increasingly vital part of today’s society. Credit card companies are just one of the investment opportunities that are becoming an integral part of daily life, and as checks become less popular and pre-paid credit cards proliferate, this trend is likely to continue. This category also covers companies as diverse as Collectors Universe, the memorabilia authentication service, and Weight Watcher, the international weight loss support group, both of whom are amongst the highest rated in their categories.

Oil and Gas

Wherever there are people there’s a need for energy, so it’s hardly surprising that there is a lot of activity from energy companies when it comes to investment. This sector encompasses many different industries. Oil is traditionally thought of as the largest source of energy supply, but even that sector includes exploration, drilling, and extraction as well as a number of other activities surrounding the research, processing, and transportation of this vital resource.

While most people are aware of the major players in the oil industry there are plenty of smaller companies, often known as “wildcatters,” working within the industry as well. These smaller businesses may not be as well-known as their multinational counterparts, but with proper research, they can prove lucrative for investors who can take advantage of their potential for growth.

Alternative Energy

Alternative energy suppliers are breaking away from the traditional model of using fossil fuels to provide energy and are instead focusing their attention on renewable sources such as solar energy, wind turbines, and hydroelectric production methods. As production shifts towards cleaner, greener methods, these companies could be the future of fuel supply.

As times change and society progresses, new industries provide new investment opportunities. Paying attention to these trends can be an exciting way to earn a profit as well as be involved in exciting new businesses.

Published: December 20, 2018
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ryan tyson

Ryan Tyson

Ryan Tyson is a freelance writer from Tampa, FL. In addition to writing, she enjoys travelling and spending time with her family.

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