Investing in new industries can help you secure your lifestyle for years to come. These are the fastest growing industries that are worth investing in today.
Americans, in general, are a bit wary of investing in the stock market. Young Americans (those 34 and younger) are especially hesitant to invest their hard-earned money.
In fact, the results of one poll found that only 37 percent of young Americans had invested money in the stock market.
Young adults may be unsure of investing the stock market, but there’s a lot of money to be made if you’re smart about your investment strategy.
Listed below are some of the fastest growing industries in which you should consider investing.
Why Start Investing?
Many people are of the mindset that investing in the stock market is akin to gambling in an online casino. It’s true that certain investments can be a big risk. But, that doesn’t mean that investing in the stock market is inherently problematic.
There are a lot of benefits you can reap if you invest in an intelligent way. Some of the greatest benefits include:
- More growth potential compared to the money that just sits in a savings account
- Tax benefits for self-employed individuals who want to avoid a big tax bill at the beginning of the year
- Retirement savings opportunities for people who don’t have a 401(k)
Investing in the stock market also gives you an opportunity to support business or industries that you want to see grow.
The Fastest Growing Industries to Invest in
The following industries are all blowing up and aren’t showing any signs of slowing down.
If you want to see a great return on your investments, these are all great industries to invest in:
Over the last few years, the software-as-a-service (or SaaS) industry has seen significant growth.
SaaS is a broad term that refers to pretty much any business that sells cloud-based services. Some of the leading SaaS companies are Salesforce, a company that sells a customer relationship platform, and Zendesk, a company that sells a popular customer support platform.
Both of these companies have seen remarkable growth and they aren’t showing any signs of slowing down.
Many people are also seeing huge returns from investing in companies that sell cloud computing (use of off-site servers for data storage, management, and processing).
Amazon is (not surprisingly) one of the biggest leaders in this market, as is Microsoft.
Both of these companies have seen massive growth year after year, and they’re likely to continue growing as more businesses find that they need cloud computing services to stay afloat.
Many people consider the cannabis industry to be a risky one to invest in. At the same time, many investment experts are jumping on the cannabis bandwagon now while stocks are relatively cheap.
Cannabis is now legal for recreational purposes in 10 states, plus Washington, DC. And, a total of 33 states have legalized medicinal cannabis.
It’s likely that several more states are going to legalize recreational cannabis in the near future, so now is a great time to invest in a cannabis company. Investment firms like NICI can teach you more about the specific companies in which you ought to be investing.
The electric car industry is growing rapidly and now is a great time to invest.
Tesla is, of course, leading the way in terms of electric cars. But, General Motors is also expected to start producing more electric cars in the coming years.
Some investment experts even think that General Motors will eventually beat out Tesla thanks to their ability to produce more affordable electric vehicles.
The e-commerce industry is also worth investing. More people are shopping online than ever before and they’re unlikely to stop anytime soon.
Amazon and Shopify are both huge e-commerce platforms that are experiencing major increases in revenue. Investing in either (or both) would be a great, low-risk option for someone who wants to see significant returns.
Finally, you might want to consider investing in the music streaming industry. Music sales might be down, but music streaming is the way of the future.
Services like Spotify and Pandora have seen major upticks in subscriptions and monthly users are skyrocketing as well.
As more and more people learn about and begin to use these services, the company’s value is likely to continue to grow.
Tips for First-time Investors
Now that you know about some of the fastest-growing industries in which you might want to invest, you’re probably wondering how you can start investing.
These days, it’s pretty easy to start investing in the stock market. Follow these guidelines, and you’ll have a nice portfolio put together before you know it:
- Have a clear plan: Know why you’re investing and what you’re hoping to get out of your investments
- Diversify your portfolio: Don’t try to get rich quick just by placing all your money into a few hot stocks
- Stay committed: Remember, investing is a long-term game
- Don’t panic: It’s easy to freak out when you see your stocks go up and down; remember, constantly buying and selling will yield lower returns that buying and holding
- Only buy what you understand: Don’t get sucked into get-rich-quick schemes; focus only on businesses and industries that you understand
Investing in the stock market can be a bit intimidating at first. But, if you keep these tips in mind, you’ll have a much easier time getting started and reaping the benefits of investing.
Looking for More Financial Advice?
As you can see, there are lots of reasons to start investing in the stock market, especially if you invest in some of the fastest growing industries like cannabis and SaaS.
Investing in the stock market is also a great tool to help you start managing your money effectively and planning for your future.
Are you looking for more tips on how to stretch your dollars and ensure you have enough set aside for a rainy day?
Start by checking out this article. It’s got lots of great advice on how you can trim the cost of your everyday expenses to have more money to put into your savings and investment accounts.
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