The business world has been radically changed over the past year. What were originally projected to be prosperous industries have now fallen from grace, whilst other business sectors have unexpectedly risen from the ashes (hand sanitiser, anyone?). As well as this, interest has been renewed in the stock market and investments, accelerated by the GameStop revolution. With so many new investors joining in the fun, we thought we would discuss some of the top industries to invest in this year. We are also going to be sharing a couple of helpful tips and tricks along the way. Keep reading to find out what they are!
1) Artificial Intelligence
Artificial intelligence has been at the top of our ‘good investment’ list for a long while now. This emerging technology has the potential to completely change our lives as we know it. From delivering healthcare to manufacturing products, the possibilities are pretty much limitless when it comes to artificial intelligence. As a result, this is one of the best industries to invest in for 2021. However, it is worth noting that investments are competitive in the AI sector. Everybody is clued in on the fact that this is the pioneering technology of the world right now. Some questionable tech start-ups might also be trying to capitalise on this momentum, so don’t be too easily pulled in. Make sure to do your research. If you are thinking about investing in artificial intelligence, then remember to allocate your assets across the board, using the all weather portfolio technique to mitigate risk.
2) Virtual Reality
Virtual reality is another emerging technology that has been all the craze for the last few years. At the moment, the only mainstream use of virtual reality is video games, immersing people in 3D photorealistic simulations that they can interact with. However, virtual reality has so many other applications that scientists are only now discovering. For example, psychologists are using virtual reality to conduct more ethical experiments on participants. Meanwhile, the healthcare industry is developing VR programs that teach students how to conduct surgery without requiring a patient to practice on, reducing risk significantly. Firefighting services are using VR in a similar way to this, creating simulations that require trainees to navigate harsh environments without actually entailing any risk. VR has a lot of untapped potential which investors can help scientists to extract through their funding. To minimise risk, it might be a good idea to start off small and incrementally increase your payments once you are confident that the VR company you have invested in has enough traction and longevity to generate some real profit.
3) Renewable Energy
Nothing is more concerning than the current climate crisis. In a couple years’ time, the damage to the planet will be irreversible. Obviously, this news has galvanised people into action, resulting in the renewable energy industry gaining a lot of attention. Renewable or alternative energy can provide our planet with an infinite source of power that is non-polluting. As coal, gas, and oil supplies start to dwindle, we might well be forced to rely on renewable energy. So, it is essential for more than just environmental reasons. Impact investors might find the green energy industries most appealing, as their money can make a tangible difference to the world. Of course, before investing, you should do some research into renewable energy. What are emerging technologies that could really make a difference to the planet? What energy solutions are a good idea, but simply aren’t practical? Gaining a better insight into the market overall will help you to make the right decisions with your investment.
4) Cyber Security
Pretty much everything is online nowadays. Our personal information, our bank details, where we live, and who we work for. As a result, cyber-attacks have become a massive problem. Data leaks are common, phishing emails are almost everywhere, and viruses can infect our computers with one mis-click. The greater demand for cyber security means that this tech industry is looking particularly profitable for investors. But where to begin? What cyber security solutions can genuinely make a difference? Which ones are promising, and which ones are going to fall flat? Once again, we recommend becoming an expert in your chosen investment field before buying stocks in anything. Business and academic journals dedicated to the subject will be best informed on what areas of cyber security are most promising for potential investors.
5) Transport
Bear with us here. Yes, the transport industry has been hugely impacted by the coronavirus pandemic. In fact, this business sector has likely had it the worst out of everyone. But as a result, stock prices are lower than ever before. Transport businesses are desperate for financial aid. Now might be the best time to invest, before the share prices skyrocket once again. In addition to this, we suspect that interest in travel will increase once the pandemic has mostly blown over. After all, people in countries from all across the world have been cooped up in their homes for over a year now. Though this might be a slightly riskier investment than the others on our list, it could also be the most lucrative. The stock market is known for its unpredictability. Just make sure to weigh up the risks/rewards for yourself and don’t rush into any decisions!
6) Cloud Computing
The pandemic has made some people realise that they prefer working from home. Even as restrictions ease, professionals might decide to combine remote working with on-site working. This has resulted in cloud computing becoming a big deal. With the cloud, we can easily share files with one another, streamlining business operations and upping efficiency. What’s more, developments are still being made with cloud computing. Who knows what could happen next? So, this is definitely a sound industry to invest in for 2021.
These are some of the best industries to invest in this year. The stock market is fickle and so there are never any guarantees with investments. However, these sectors certainly look promising.