Customized watchlists with full streaming quotes from leading exchanges, such as NASDAQ, NYSE, AMEX, OTC Markets Small-Cap, LSE and more.
At the time of writing, markets around the world have taken the biggest nose dive since the 2008 global banking crisis. Compound the falls with the Coronavirus epidemic sweeping the world, we are entering uncharted territory for markets which, as a result of globalism, have become more interconnected than in the past.
The Dow sneezes and the FTSE catches the cold. Investors are looking for safer havens for their money, to protect their long term security and financial wellbeing.
So just what are the safest sectors in which amateur and professional traders can invest in for long term security and a hedge against the current and potential market turbulence we are seeing today?
The Health Sector
While it is true that the health sector has in the past had a history of volatility and sometimes referred to as a casino by even the most seasoned of investors. However, spending in the US healthcare system in 2019 was some $3.6 trillion and, in 2020, is expected to rise to $3.7 trillion according to Fitch Solutions.
U.S. health spending represents a huge opportunity for investors and, given the increased life expectancy of adults in 21st century United States, the research, development and marketing of new pharmaceuticals, advances in health tech and general health care, the sector spend is projected to rise year on year.
Pharmaceuticals alone are worth some $500 billion plus in the U.S – some of the world’s largest companies trade in this sector. One example of the potential for returns if you undertake due diligence is Gilead Sciences (NASDAQ:GILD) which, since 2015 has seen an increase in dividend payouts of some 47%.
Given that it looks like global healthcare expenditures are projected to rise by an annual rate of 5.4% between 2017 and 2022, this could be one of the best times for investors to move in to healthcare.
The Technology Sector
The tech sector has long been considered an area where this is potential explosive profits to be made. However, with the potential for explosive growth and profits, there is also the potential for ‘crash and burn’. The tech sector is held together by behemoths such as Apple, Microsoft and Amazon, yet there was a time when these companies were being run from a ‘garden shed’ and no-one had heard of them. Few people outside the bubble had heard of Shopify before it went public.
Artificial intelligence is one of the driving forces in the tech sector, powering things most people take for granted in their daily lives. Voice activated search on Smartphones is just one example where AI affects our daily lives. The casino online sites which are used by hundreds of thousands of punters around the world are powered by AI, as too are devices such as Amazon Alexa and Google Assistant.
Of the top performing stocks of the 21st century, four of the top ten are in the tech sector, so there is great scope for investors seeking a short, medium or long term safe haven for their wealth.
The Financial Sector
Mention the financial sector and it will strike fear in the hearts of investors. Many investors still think back to the financial crisis of 2008 and still believe the financial sector to be a risky investment. However, the S&P 500 is dominated by companies which include American Express, Bank of America, and Berkshire Hathaway.
Many investors equate the financial sector with Wall St, big banks and casino banking, but there is more to it than that. A health financial sector is one of the bedrocks of a sound economy and safe investing, and as such should be considered as a place to park wealth in times of turbulence, as we are seeing now.
The sector is projected to grow in by some 6% to a value of approximately $27 trillion by 2022. The tech sector is driving innovation and disruption in the financial sector, and both are interconnected in this digital world. Companies such as PayPal and Visa are well known but, with soon to be IPOs of Ripple and potentially R3 at some point, the sector is strong and and has the potential for investors to reap the rewards of investing in established companies and the ‘new kids on the block’ over the next few years.
