When thinking of companies that have staying power in the 21st Century, the mind immediately goes to the technology sector: Apple, Microsoft, Google, Facebook, and Amazon. The big giants.
However, there are other not-so-popular industries that are ripe for people to make investments in that could pay off huge over the next decade — and beyond.
While betting on specific industries could seem a bit limiting to portfolio diversification, it never hurts to target businesses — or funds — where not a lot of eyes (and dollars) are presently looking. In other words: bucking the public opinion comes with its inherent risks but the rewards are potentially huge if you get in on the ground floor of a stock, or at least before something takes off and becomes wildly expensive.
Here are some areas where to look to affordably spend in 2018 that could pay dividends over the next decade.
Most guys don’t make it a habit of spending their free time in shopping malls but if you have been to one in the last six months you will have noticed something strange: Price tags on items like sweatpants and sneakers continue to skyrocket (for example: lululemon jogger pants are $128) yet people keep buying them like they’re going out of business.
Hint: This industry is here to stay for the long-term. People will need new shoes until the end of time, and consumers will always flock to the familiar brand when making such a purchase. And price be damned, they will always pony up the extra buck or two to attain that sense of comfort.
While online retail might be destroying traditional, commercial storefronts (like the aforementioned shopping malls), there’s still a high demand for these products. And there always will be; unless, of course, our society regresses into a slothful utopia over the next decade. It’s an unlikely forecast.
Companies that make drones are a good investment. Companies that use drones, or want to use them even more in the future (see: Amazon), are a good investment. But the best place to spend money? The companies that make the parts that make the drones. Look those ones up and open up the checkbook because drone technology is just at its beginning stages. And privacy be damned, drones are here to stay.
Similar to drones, companies responsible for the technology that make tracing products easier hold the keys to where online shopping goes over the next quarter century. One stock that seems to be undervalued is Zebra Technologies Corp. (ZBRA), a company that plays an integral role in supply chain management with a bevy of resources poured into barcode scanners that track products for on-demand delivery. As late millennials age into adulthood around 2020, there will be an even greater emphasis on online shopping and an even larger need for companies like UPS and FedEx to track goods around the globe. To keep that system flowing at its current rate, more and more companies will see the opportunity to develop barcode scanning technology. It’s an untapped market that’s set to explode.
Distractions — books, movies, TV shows — are a priceless entity. They’re a timeless one., too.
So it makes sense that the stock market and the entertainment industry go hand-in-hand. From theme parks to 4D movies, people will always need a place to go to waste time — and money. While Netflix might have a negative cash flow and own no profitable franchises at the present moment, its streaming model has opened up Pandora’s Box for companies such as Disney.
Not only can these storytelling conglomerates control what we see on the big screen, they will forever be part of our day-to-day lives at home. And as the political world continues to spiral out of control at a more rapid rate than any previous decade, its sound to think that in 2020 and beyond there will be an even great need for diversion.
And if you’re wondering, “Is it too late already to get in on this industry?” The answer is clear: We’ve only seen the tip of the iceberg of where this locomotive is heading.
It’s almost hard to believe that this industry has taken a dip recently but for some reason Micron’s stock fell earlier this year . The good news: The opportunity presents good value for investors looking to buy low. It’s perfectly reasonable logic to believe that the chip-making industry will continue to produce technology for servers and data centers around the world. The outlook may appear hazy in the present but once the clouds part there will be a big, blue beautiful sky that will pay dividends in cold hard (green) cash.
Robots have eyes, too, you know. Companies that are able to give them such vision are worth investing in for the long-term. They may not pay dividends in 2019 but as the world continues to hand itself over to automated systems it makes sense that the creators of this technology are poised to stick around. There are some American companies that seem interesting (Cognex Corp comes to mind) but there are plenty in China and from other emerging markets that will look to give such systems the ability to scan accurately — and quickly. While the international companies will be harder to invest in early on, it’s an area that deserves attention over the next decade as robots are beginning to be used in industries such as healthcare (robot surgeons!) and consumer staples (food and beverage).
While these sectors begin to be turned over to robots, there will be more and more emphasis on giving robots sight so they can adapt and expand their functions.