2020 Investing: The 5 Top Industries in the US to Invest In
Any investment advisor will tell you that there are few worse ways to manage your money than by simply leaving it in a savings account. No savings account will pay enough interest to outpace inflation, so by leaving your hard-earned dollars in one you’re just letting your savings get eaten away!
The right move to make is always to invest a significant portion of your savings. But what should you invest in?
Ahh, but that’s the million-dollar question. In this article, we’ll attempt to answer that very question by providing you with a list of the five top industries in the US to invest in this year.
Table of Contents
1. Cannabis
There’s no doubt that the United States is slowly but surely heading towards the federal legalization of cannabis. And when that happens, you know what the natural consequence will be: an immediate upward tick in the stock prices of all major cannabis producers.
You can already start investing in cannabis by picking the large distributors that work in states where recreational use of marijuana is already legal, like California and Alaska. The key here is to pick companies that will survive in the long term and are not just coming up because of the short-term marijuana craze that comes directly after legalization.
After all, you want to pick a stock that will give you returns for years to come, not just for a couple of years before it bottoms out.
2. Biotechnology
As technology continues to advance, there is perhaps no industry where its applications are more apt than in the medical field. Biotechnology was a big player in the 2010-2019 decade, and we expect the trend to continue in 2020.
Look out for all of the big players in biotech: Johnson & Johnson, Pfizer, and Amgen just to name a few. Figure out those that have the best media coverage and reception among medical institutions, and those will probably be your winners for years to come.
3. Artificial Intelligence
Another major development in tech is the widespread use of artificial intelligence. AI can be used to enhance many business processes, from marketing automation all the way to manufacturing processes.
For instance, consider a manufacturer of a complex product. Artificial intelligence can analyze big data in order to reveal where the manufacturing process bottlenecks exist and thus provide recommendations on how to optimize the supply chain.
4. Renewable Energy
Environment-friendly initiatives continue to grow in 2020. Not only is the general public opting for green appliances and energy-saving HVAC systems to reduce their carbon footprint, but so are large businesses. More so than ever, governments are incentivizing the use and production of renewable energy sources.
Figure out which players in the renewable energy market have the ear of the government, and you’ll figure out which producers of renewable energy that you should invest in.
5. Urban Real Estate
As the old saying goes, “there is no greater investment on Earth than a piece of it”. The three most important keys to success in real estate investment have always been location, location, and location.
Talk with a real estate advisor to get investment information about which urban areas are shortlisted to explode in growth in 2020.
Top Industries in the US to Invest In
There you have it — all of the top industries in the US that you should consider investing in this year.
For more investment advice, be sure to check out the rest of the articles on the website!