Anyone who has any experience in the stock market understands that the market can be a volatile and unpredictable place. 2017 promises to be a year that builds on this legacy.
The Brexit vote and the US Presidential election has made the market more uncertain than ever. Throw this upon the constant uncertainty surrounding the interest rate hikes at the federal reserve and it is obvious why people have questions.
While the economy has proven resilient in the face of global and political uncertainty before, will this year be a bear market or a bull market? What industries should people consider investing in?
Renewable Energy Market has a Bright Future
There has been a significant amount of money invested in renewable energy both as a moral initiative and as a sector for economic growth. The renewable energy industry posted record numbers back in 2015 as it grew by over 5% up to almost $300 billion. Global investment in renewable power and renewable energy capacity was twice that amount invested in new coal and gas technology. The leader of this renewable energy industry continues to be solar photovoltaics which has averaged 42% in the past five years. Furthermore, renewable energy represented close to 20% of the overall energy consumption in 2015.
From the political standpoint, the COP21 summit recently held in Paris represented leaders from 195 different countries. All of them committed to limit the pace of global warming and promised to keep the warming to under 2 degrees Celsius. Finally, the oil industry committed to investing $2 billion in the renewable energy sector. For those that don't know, renewable energy consists of marine, wind, biomass, solar, hydropower, biofuels, and geothermal energy sources. These markets are going to grow in 2017 for several reasons:
Tax Credits and Clean Power: Governments have prioritized the health of the environment through its tax legislation. They offer tax credits for people investing in renewable energy and penalize companies that violate emissions regulations. Governments are providing grants and stimulus packages for the renewable energy sector through the COP21.
Independence from Oil and Gas: Countries desire independence from oil and gas because of the volatile nature of the Middle East and because of the health of the environment. Renewable energy cities are growing at a record pace and the US has projected that close to a quarter of its electricity will be generated through renewable energy sources such as solar and wind by 2030.
Lifestyle and Culture: Society has been focusing on sustainable lifestyles as a culture trend for several years now. Copmanies are implementing novel recycling procedures. People are sorting their garbage. Everyone is trying to be clean and eco-friendly because it is seen as cool and popular in today's culture. Don't underestimate the power of culture.
Investment Strategies in the US Market
Multiple reputable sources have predicted that the S&P 500 will continue to grow at its record pace. In fact, Credit Suisse, Bank of America, UBS, Citi, Goldman Sachs, Merrill Lynch, Deutsche Bank and JP Morgan have all targeted that the S&P 500 will reach 2,300. While this should encourage people to invest, it is important to invest in the US Markets wisely.
People looking to invest in the stock market should contact Crewinvest.net and learn more about their 15-year plans that allow people to invest directly into the S&P 500 and benefit from this record growth rate by contributing regularly. People can select from monthly, quarterly, semi-annual, and annual contributions. Crewinvest is so confident in their abilities that they offer an HSBC guarantee that the capital will not reduce in value and offers a minimum return of either 40% of the S&P return- whichever is higher. This offer cannot be topped.
The Technology Sector Should Grow
It is no secret that the technology sector has seen record growth in the past few years. Apple has become one of the largest companies on Earth and even Microsoft is posting record highs. Now, people are comparing the technology industry to the dot-com bubble from the new millennium. The only difference is that this time the growth is actually a natural and sustainable.
Automation technology is being used by individuals and corporations to implement advanced technology into their daily routines. Just take a look at the drones from Amazon, the rideshare services from Uber, and the dominance of facebook. Smart cars are on the horizon and even refrigerators are getting smarter. People seem to use apps on a daily basis to stay in touch with family and friends. CompTIA reported that the jobs in the technology field grew by 40% in the US in 2015. The research consulting firm IDC reported that the global IT market is expected to grow by $1 trillion in 2016. This includes telecommunications, software services, and hardware. The US accounts for 28% of this market, which is valued at $3.7 trillion today.
If this isn't enough to convince people that the technology sector is set to grow this year, here are a few more reasons published by the New York Times:
Wireless Innovation: For years, the IT industry has been trying to find a way around wires that keep the industry contained. In order for people to overcome this hurdle, infrastructure was needed. Now, it has arrived. The 5G next generation mobile technology is almost finished. This allows easy connections to the internet and all of its benefits from all over the world without wires. This puts devices and people in unprecedented connectivity.
Internet of Things: People have undoubtedly heard of this term. The publisher Business Insider reported that $6 trillion will be invested in the Internet of Things over the next 5 years. By 2020, 24 billion devices will be installed worldwide. This represents explosive growth that people should take note of.
Smart Technology is Growing: People have seen the smart cars advertised by Uber. People have noticed the wireless cameras in light poles. People have read about refrigerators that are smart enough to order groceries when people run out. These are only a few examples of how smart technology is going to permeate the lives of everyone.
Data Mining: The era of big data has arrived. Businesses are able to communicate straight to the pockets of their customers individually and data analysis professionals will be in high demand. Companies will individualize their services to meet the demands of their customers using this data.
Information Security: Unprecedented connectivity means increased vulnerability. Companies will need to rely on professionals to keep advanced cyber security systems in place. Because the world is more connected than ever, people looking to steal this virtual information will be emboldened.
Virtual Reality: Many people have seen the virtual reality headsets at the malls and have tried them out. Numerous technology leaders are racing to develop this technology. This is technology that will not only change the gaming sector but promises to impact other areas as well. Doctors will be able to perform operations using this technology as well.
Healthcare: Speaking of technology, the healthcare industry is changing. Surgeons are already using robots to perform surgeries in a more precise way. The industry relies on advanced technology to perform research and keep patients alive. These are all aimed at improving patient safety and reducing overhead costs. This has always been a target of technology and promises to grow at a record pace.
In recent years, the healthcare industry has seen impressive growth because everyone gets sick and everyone needs a doctor. The aging populations is getting older and diabetes, high blood pressure, and obesity continue to represent major sources of patients for hospitals and physician practices. With the baby-boomer generation reaching an elderly age, this large population is going to need health care in record numbers. Cancer and HIV continue to remain hot-button issues and global epidemics with diseases such as Zika and Ebola seem to drive healthcare research. All of these issues can be talked about in detail but it is clear that the entire sector is set to grow by leaps and bounds. While their stocks are still prone to fluctuations on a short-term basis, the long-term projection for the entire sector has been up for years and this trend will only continue as these major health care issues continue to remain at the center of the geopolitical realm.
ETFs Remain a Solid Investment Option
Most people have seen the hype around ETFs and have noticed that the sector did not meet expectations in 2016; however, these remain a solid investment option and continue to represent some of the lowest expense ratios in the entire sector. For example, people should take a look at the Broad Market Index ETF which has an expense ratio of 0.03%. This means if someone invests $10,000, the cost of owning this ETF over the next 10 years would be $23. This represents pennies for a secure investment that will grow. There are similar options in the Total Stock Market fund that would cost someone $48 for that same period of time. Don't get discouraged by ETF performance in 2016. They are still attractive options which will rebound in 2017.
Investors have heard about the hype surrounding the emerging markets. While China's markets did fall last year, people should take advantage of the tumble to invest while the prices are low. China has the world's largest population and their technology has been modernizing at a record pace. This has allowed them to pass the United States as the global economic leader and this will only continue. The East Asian markets over-reacted to the global equities scare and the Brexit vote with the Shanghai Composite tumbling much farther than other markets in 2016. This should be a sign that the market is going to rebound in 2017 to reflect the response of the global markets. Don't shy away from emerging markets.
Plan For Retirement
Clearly, the market is set to grow; however, with so many options out there people can struggle to plan for retirement. Anyone looking to plan for retirement should contact Crewinvest.net and see what savings and retirement plans can suit the needs. Crewinvest offers tax-free secure savings and retirement plans. Unlike other financial planning agencies, the client still has the say over their retirement options such as fixed income products and regular contribution plans. We still offer advice for people who have 10 or more years before retirement.
It is never too late to start saving
Even people close to retirement can benefit from our bond options that deliver a solid interest rate paid on a semi-annual or even a monthly basis. Contact us today!
Retirement Planning: Regular Contribution Plan
A popular Regular Contribution Plan is available where you can save on a monthly, quarterly, semi-annually or annual basis. This plan invests directly into the S&P 500. Read about S&P that why Warren Buffet thinks this is still the best investment.
The plan guarantees your capital to not reduce in value and earn an average return rate of 8.5% per year (the plan does pay a minimum interest rate as well, about this please contact us to find out more and how it works).
100% principal capital is guaranteed by HSBC
Choose between 7 and 15 year term. 10 and 20 year term will be available in March 2017.
Option to contribute monthly, quarterly, semi-annually, annually
Average return of 8.5% per year (minimum interest if offered, contact us for further details)
Participation in the growth of the S&P 500 Index
Security through the safe and private custody of assets
Ability to participate in the stock market growth without the downside risk