Investment Talk: Long and Short term

Investment Talk: Long and Short term

Making an investment is always a risky thing to do, especially when times are uncertain and it is a mystery if the sun would rise again tomorrow. In a time period when individuals, corporate and businesses are struggling to survive, the value of every single penny is even more treasured. We understand this.  Thus, with the help of EMERGE 180

Best Sectors for Long-Term Investments

When the investment must be made long term, it is important to consider and research the history of the particular industry. Not just that, future predictions should also be considered.

Art

During the days when there are multiple lockdowns and people are quarantined globally, the Art Industry has taken a major hit. Not only is it because platforms for various kinds of display and marketing of artists and their work have opened but also because of the fact that every single form of Art i.e, Music, Painting and Craft, Fashion, Conceptualized Work, Writing and Publishing are making multiple bands in this time.

Health Care

Health care would be a safe sector to invest in as it’s the defensive sector. It has managed to survive multiple economic crises and still make profits. The health care and biotechnology industries have seen an impressive rise in technological advancements recently.

The healthcare sector covers several other branches:

  • Hospital conglomerates
  • Insurance companies
  • Institutional services
  • Drug manufacturers
  • Medical instrument makers
  • Biomedical companies

In 2020, the healthcare sector is one of the few sectors that are likely to have high earnings. Many sectors have suffered due to the recent unfavorable economic conditions.

Computer and Information Technology Industry

In the last 100 years, technological progress has changed the face of the world. The industry is also known as information technology. The region plays an important role in the development and innovation of the information age. Technology has transformed the world into a small global village in the last 20 years

The sector contains 2 main stock categories:

  • Technological product manufacturers
  • Technological service industry companies

It has the potential of reaching $3,294 billion by 2025. These new products are meant to improve service delivery and human interaction.

As of April 2020, 59% of the global population are active internet users. China, India and the United States had the highest populations. The internet connects more than 4.7 billion people globally.

Business Services

As more businesses emerge in the world, the demand for professional services grows. Financial services is one of the most important business services segments that has continually grown. This segment is also known as digital commerce and includes online merchants, merchants, payment solutions and international and local distribution companies. In developed countries, most people use mobile phones to facilitate mobile payments. The global payments industry has made a significant contribution to the global e-commerce segment.

Best Sectors for Short-Term Investments

If you’re not interested in Long-Term experiments, but rather in short term ones, Mr. Nandy can advise you once again. Here are some industries you should consider investing in, when opting short term periods.

Fast-Moving Consumer Goods (FMCG)

This one of most active and fast-paced industries in the modern world. FMCG deals in the production of daily use products.

Daily use products in the FMCG industry include detergents, batteries, cosmetics, soaps and toiletries. With most consumers barely focusing on these essential services, the FMCG sector offers a convenient investment opportunity. The industry is highly competitive and profit margins tend to be low. Consumer behavior is predictable and easy to influence. The industry produces products in large quantities. Most companies in this sector regularly pay dividends to their shareholders and thus offer reliable earnings potential.

Consumer Discretionary

Also known as cyclical consumer stocks, consumer discretionary mainly focuses on businesses that offer products and services considered to be more of a luxury and not a necessity.

The products and services are sensitive to economic cycles. The stocks of this sector are considered to be cyclic in motion because they offer seasonal demand.

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