You’d probably love a crystal ball to know where best to invest your hard-earned dollars in 2016. If it’s any consolation, some financial trading experts wouldn’t say no to one, either. In the absence of any such magical way of seeing into the future, the best course of action is to invest in general sectors where growth – or at least a steady financial performance – is likely.
It’s important to do your research, and to choose experts who can advise and help you invest in the right way, such as an experienced CFD trading company. The right knowledge in the right sector will bring you the right results.
Renewable energy and the environment
Momentum is gathering rapidly as governments commit fully to developing renewable energy sources, extract energy from previously hard-to-reach sources by fracking, and protect the environment from harmful greenhouse gases and other pollutants.
Renewables are on the up but extensive investment in automotive technology is hastening the widespread use of electric and hybrid power cars and vehicles and this could be the biggest and best opportunity here. This makes for a potentially sound investment choice if you decide to invest in carefully selected companies involved in this area.
Healthcare and the aged
In common with general worldwide trends, Australia’s population is ageing so more investment to cater to a growing sector is underway. Building accommodation geared to the needs of older people, and bolstering the care services infrastructure, means organisations in this sector can look forward to a rosey future so may be an investment option to consider.
Agriculture
Investing in a commodity that can no longer be ‘made’ and that won’t go out of fashion is ideal, and agricultural land definitely falls into this category.
As Australian cities expand and general urbanisation continues unabated, some prime farmland has been swallowed up. Inevitably this puts the remaining land at a premium and makes for a potentially good investment opportunity. A way to invest in this area is via a soft commodities fund or companies directly involved in this sector.
The service sector
A highly successful performer in the Australian economy in 2015 contributing 53% to the GDP (Gross Domestic Product), the service sector is predicted to be strong again in 2016.
Services cover a very broad range – basically anything not involving the making or creation of particular goods. Various activities come under the ‘service’ banner including, tourism, domestic services such as plumbing and gardening, accounting, car mechanics, restaurants and legal to name a handful. It’s important to research the best performing companies – and services – to tap into the potential of this sector.
Investing in a carefully chosen large service company – or portfolio of them – could be a sound move in 2016.
Tourism and leisure
While the dollar is down – it’s lost more than 30% of its value over the past year – it’s good news for Australia’s tourism and leisure industry. People are more inclined to holiday within the country rather than travel abroad, and foreign visitors are attracted in higher numbers.
While likely to be a worthwhile investment for the time being, you’d need to keep an eye on the value of the dollar to ensure leisure and tourism remains a good option. If the dollar rises appreciably, then it may be worth moving funds into another sector (but take appropriate advice before doing so).
Others
Fitness is a strong option presently with the increased enthusiasm for fitness tech such as apps, Fitbits and apparel. IVF (In Vitro Fertilisation) companies are a potentially sound investment choice; a few players dominate a market with a likely steady future as the trend for couples to delay starting a family shows no signs of slowing.
