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Numerous factors make it difficult to develop an investment strategy that will help you to raise capital for your business. Among these factors:
- The 2008 economic crisis silenced optimistic projections.
- Legal and regulatory systems contain outdated laws and policies that constrain innovations.
- Regulations lag behind recent developments due special interest groups.
- Rigid labor laws discourage hiring.
- Various market barriers limit the free flow of services and goods.
- The globalized digital market makes it harder to sustain intellectual property rights.
Due to these and other influences, hopeful startups fail. Often, that’s because their business model didn’t account for hidden restrictions in the market. What’s more, even business owners who do manage to stay afloat often find it difficult to cope with the harsh realities of the modern business climate.
Nevertheless, there are certain industries that provide substantial low-risk investment opportunities. Develop your investment strategy around one or more of these industries:
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Millennials are now the largest demographic group in the U.S., surpassing previous generations. They are driven by completely different economic and cultural incentives. And they are no longer inclined to live in suburbs. Instead, they seek cultural diversity. And they find it in the infrastructure of urban centers. Their priorities include the quality of the neighborhood and proximity to jobs.
For these and other reasons, home ownership is on the decline among millennials. The overwhelming majority of them choose to rent rather than buy. Additionally, this generation is innovative and tech-savvy. Therefore, they increasingly turn to closed-loop rental platforms instead of traditional brokerages. Add rental property to your investment strategy and watch for good returns.
You might think that investing in construction is an investment strategy cliché. However, construction has recovered from the subprime mortgage crisis. What’s more, it currently shows good signs of growth.
According to Bureau of Labor Statistics, employment in this sector increased by 210,000 in 2017. The main growth comes from trade contractors. With the addition of 30,000 jobs in December, construction remains one of the fastest-growing industries in the U.S.
However, pay close attention to the construction projects you choose to include in your investment strategy. Recovery happened unequally. This means there are regions where housing prices have not recovered to the pre-crisis level. For example, the construction industry in Las Vegas and Phoenix is still lagging behind that of the rest of the country. In contrast, the southern markets of Texas and Florida are showing signs of unprecedented growth.
The banking sector is feeling well and ready for growth. The Trump administration is rolling back numerous regulations that were put in place during the 2008 financial crisis. Those policies raised banks’ expenses and cut short-term profits. Therefore, mitigating those policies can make banking even more lucrative.
Consumer demand for new green energy installations continues to grow. This is true despite uncertainty in the regulatory framework. Additionally, due to ongoing progress in technologies, the price of wind and solar energy continues to drop. Therefore, green energy is becoming more affordable and popular.
What’s more, countless international companies have committed to transitioning to renewable energy sources. Further, wide public support is paving the way for more growth in this industry.
The earth’s growing population is draining scarce water resources, and the available supply of fresh water continues to diminish. This creates a large demand for investment in the water industry. This includes treatment, transport, and packaging of water.
The recent water crisis in Flint, Michigan, opened up discussion about the state of the water supply in the U.S. Additionally, massive public outcry called for new health and safety standards. Further, requirements for potable water and industrial consumption will continue to increase. Therefore, various businesses operating in water treatment, transport, and packaging will benefit.
The healthcare sector consists of many different industries. These include pharmaceuticals, health insurers, and hospitals. Each has a different dynamic and growth opportunities.
However, the overarching trend is the aging population of baby boomers. This trend brings with it epidemics of obesity and diabetes as well as more people living longer with chronic disease. Thus, the industry will have plenty of room for expansion and empty niches to be filled. Additionally, with technological advancements, new methods of personalized medicine promise to take hold of the market.
According to the World Health Organization, the world population is getting older. As the elderly population increases, various investment opportunities appear in the industries that serve this age group. These include home health aides, personal care workers, and various assisted-living communities.
Regardless of any changes in government or alterations in the law, lawyers will be always needed. Despite the promise of smart contracts that theoretically could resolve conflict without human intermediaries, positions in the legal sector remain firm. Our society is full of friction points that require legal arbitration. Law firms will prosper for decades to come. Therefore, service-oriented legal companies are one of the safest sectors to include in your investment strategy.