Feb 23, 2020  | Tags: Investment, sustainable investing

Our Insights

Whether you’re new to investing or just want to mix up your portfolio with some fresh investments this year, here’s a quick rundown of the best industries to invest in for 2020 and beyond.

Industries Expected to Perform Well in 2020

Technology & Communications

There seems to be no end in sight to the explosive growth we see in the tech sector. With new ideas and more entrepreneurs coming onto the scene every day, there’s always attractive innovation fueling growth among tech companies.

Google is just one of the robust giants driving growth in the tech industry. Amazon is another company that consistently delivers an admirable performance in the technology sphere. Entertainment and social media giants like Netflix and Facebook, respectively, are also good companies to invest in over the next year or so. While early stage tech companies can be boom or bust, the big established tech companies show no signs of slowing down long term.

Biotech & Healthcare

You could expect just about anything in the healthcare industry to do well over the next couple of decades as a large and aging Baby Boomer population will increase the demand for medical treatment and health services. Pharmaceuticals is a specific niche of the medical industry with big names like Bristol-Myers Squibb that you’ll want to keep an eye on. 

The healthcare industry is generally a very stable one to invest in over the next couple of years since the demand keeping companies in business is typically independent of other patterns in the economy. If you’re looking for a low-risk industry to invest in for 2020, then healthcare is a good option. To shake up your portfolio with something a little higher risk, take a look at the biotech sphere where emerging technology meets medicine.

Basic Consumer Goods

While investing in very average household items might not sound all that exciting, you shouldn’t underestimate the value of such a steady industry. Trends come and go and unique startups can quickly burn out, but those tried-and-true products that people rely on every single day keep some very solid companies in steady business with few fluctuations. Investing in simple consumer goods can help you keep your portfolio well-rounded and stable.

Two Key Principles for Planning Your Investment Strategy

For successful investing in 2020 and beyond, you need to look beyond just the performance of individual companies or even entire industries.

The first principle for creating your 2020 investment strategy is:

Make sure your strategy reflects your personal values

You’ll quickly detect and understand the minute fluctuations of an industry that you’re most familiar with or that champions a cause you support. Look at more than just the figures and business strategy of a company; make calculated investments in ideas and convictions that matter to you.  

For example, you may want to focus your investments in companies showing a commitment to ethical and sustainable practices. Instead of just trying to find the next most lucrative opportunity, you’ll play a real part in helping to make the world a better place. This is something we're passionate about here at CWM - sustainable investing.

If you’re truly behind what a company stands for, then you’ll get a deeper sense of satisfaction from your investment and watching the brand grow. A sense of loyalty can also help you to stick it out through those dodgy times and weather dips in the market, which brings us to the next principle:

Stick with your investment strategy

Once you’ve selected the industries you want to support and have enacted your investment strategy, stick with it for the long haul. Resist the temptation to suddenly jump ship at the first sign of a downturn or at a sudden opportunity to invest in a hot new trend.

Remember, investing in shares is a long-term endurance race. While some experienced investors can take calculated short-term risks in the hopes of making quick and sizable gains, that’s not the wisest course for every investor.

Stay the course and you will see gains over time, slow and steady. Avoiding the tendency to panic will help you make a success of investing in a particular industry.

Get Advice

While trends change, and can be hard to keep on top of, the best way to ensure sustainable success is work with the best. Get advice from leading advisers who can help you set a sustainable investment strategy and guide you along the way.

Talk to the team at Calder Wealth Management. Call us on (08) 8373 3333 to schedule your free initial appointment. 

Written by Ben Calder at Calder Wealth Management.

This is general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this document, you should assess your own  circumstances or seek advice from a financial adviser and seek tax advice from a registered tax agent. Information is current at the date of issue and may change