Learn More about the 6 Best Investment Options for the Next Decade
It’s absolutely essential that investors are able to learn more about the best investment options available, but things have changed considerably from what they once were.
According to Mohamed El-Erian, the chief economic adviser at Allianz, the era of stellar returns is finished. Investors must stop chasing huge cash returns and focus on slower, stable growth.
Not Really the End of an Age for the Best Investment Options
There’s a sense that the shifting investment climate is somehow the “end of an age”, but that’s not really it. It’s more of a correction back to the norm. The truth is that massive returns from 1985 through 2014 were an anomaly when you compare them to the long-term average.
They were created by a unique confluence of favorable conditions, including declining inflation and interest rates, higher global economic growth, and the huge growth seen in China.
Today, things have changed, and investors need to know the best investment options that will take them through the next decade. “We are coming from a period in which liquidity has been the major driver of asset prices,” El-Erian explained to CNBC. “What the market is telling you today is ‘You know what?
That is no longer sufficient to maintain prices at a high level.’ You need something more, and that something more is fundamentals.”
We’re more and more connected with each passing day and the networks that make this connectivity possible aren’t going away. They’re only going to grow. By investing in companies that build and maintain those networks, you’ll be able to not only safeguard your wealth, but watch it grow.
Get creative with your network investing, too. Consider everything from cell phone carriers to ISPs, fiber optic network providers (which constitute everything from Verizon to Google), and more.
Connectivity and communication will be key to bringing underserved areas of the world into the 21st century as well, so consider investments in communication networks in less developed areas of the globe. It may also be worth your while to consider related verticals.
Augmented Reality (AR) is not technically part of the communication sector at the moment, but chances are good that as the technology evolves, it will be. The same is true for things like Virtual Reality (VR).
Water Will Matter Greatly
It’s surprising that something as simple as water could be one of the best investment options of not only the next decade, but of the next century. Potable water is in short supply just about everywhere, even at home in the US.
Consider the incredible drought that has California’s farms and orchards blackening and drying up.
However, there’s also the potential for global warming to at once raise sea levels while reducing the amount of drinkable water on the planet. Water shortages will become commonplace, and if you’re able to invest in this area, you could see very good returns over time.
Healthcare,Insurance, and More
The world’s population is aging. That’s true in the US, Canada, and Europe, but also for the population of China.
As the population ages, the need for healthcare is only going to increase. There’s also the fact that this area is home to a number of the best investment options, from insurance companies to hospitals to in-home care providers, physical therapists and everything in between.
You can also consider other options, such as holistic health, cosmetic and plastic surgery, Alzheimer’s treatment, weight loss and more.
Energy Options Abound
In the past, investing in energy really meant buying into oil. However, that’s not the case today, and there are actually some good reasons to get out of oil while you still can.
If the Fed does raise interest rates in 2016 (and they’re planning two to three hikes for this year), then the stronger dollar will significantly drive down the cost of oil, which is already struggling around the world. Instead, put your money into alternative energy production.
Solar has become not only more popular, but more affordable for the everyday consumer. There’s also the option of wind energy, wave energy and more.
Consumer Goods Mega-Corporations
When’s the last time you saw a new brand of toothpaste hit the market and grow like crazy? While you’ve probably seen a few new names on the shelf, the truth is that most of them are owned by just a couple of companies.
The same thing applies to shampoo, bath soap and even frozen foods. Consumer goods mega-corporations have a stranglehold on what people buy, and investing in them definitely lets you take advantage of one of the best investment options for the foreseeable future.
Look for the consumer goods consolidation to keep going, as well. Those mega-companies will continue to purchase businesses and bring them under the same roof.
Sure, China’s had their share of negative economic growth. However, that’s just a blip on the radar with the Asian giant.
In fact, the government has announced that they’re transforming the Chinese economy from one focused on production to a consumer economy (more like the US and Europe), and that means big things, particularly for investors able to put their money into companies that will be importing goods into China, rather than exporting goods out of the country.
Best Investment Options Bonus: Food
We’ve covered six of the best investment options, but here’s one more for you – food production.
Everyone has to eat, and as more and more consumers wake up to the fact that our industrialized food system isn’t the best it could be, new alternatives are being born.
This means that investors have any number of options to build their wealth. You can invest in organic farms, farm to table ranches, lab-grown meats, and more. There’s also the potential for investing in food industry-related fields, such as computer systems that help farmers detect soil imbalances.
These are some of the best investment options for the next decade, although many of them will hold true well beyond the 10-year mark. By getting into these sectors now, you ensure that you’re able to reap the utmost in rewards over time.