Trading

Profitable markets for investors

When you’re looking for the most profitable places to put your money there are several things you should consider before you invest. Are you looking for long term or short-term investments? What level of risk can you tolerate? How well can you personally understand different sectors, and therefore identify the best options within them? With these considerations in mind, these are the most appealing sectors for the general investor at the present time.

The financial sector

Financial services are undergoing a real boom at the moment, partly due to the steady increase in the number of businesses starting up since the global economy emerged from recession and partly due to rapid changes in regulatory requirements which mean that more businesses need access to specialist expertise. Accountancy firms are a particularly good bet and the natural resilience they have as a result of being able to scale work to meet fluctuating demand means they have natural appeal for those with an interest in start-ups.

Information technology

As the information revolution continues to develop, this sector is doing extremely well – the chances are that you wouldn’t even be trading without the latest technology both in hardware and in resources like your stocks and shares calendar. There are risks in this sector, and the most important thing to look for is adaptability – the ability to move between product types and adjust to changing conditions as specific areas of the market reach saturation point.

Energy

With growing government support for the oil and gas industry, new opportunities are opening up, especially around exploration and the development of new deposits. It’s helpful to have some technical experience in this area so you can rapidly assess new drilling prospects. In the long term, the rising cost of extraction will be balanced by scarcity-driven value, and there’s also the option of going into renewables, an area that is expanding rapidly in some regions.

Industrials and manufacturing

Almost every other sector depends on industrials and manufacturing. This sector is going strong at the moment and has shown impressive resilience over time. Now is the time to get onboard if you want to take advantage of its medium to long-term growth prospects. The increasing focus on development in national infrastructure creates immediate opportunities in production and also improves the long-term picture as far as distribution is concerned.

Biotechnology

Although healthcare has been going through a bit of a rough patch recently, medical research and other areas of biotechnology are continuing to do well and offer good long-term prospects as the public becomes increasingly interested in what they have to offer. Recent breakthroughs in materials technology are beginning to have a significant impact on this sector and smart investors are looking out for innovative companies able to take advantage of such developments.

With worldwide markets currently in a state of flux, some investors are cautious, but this is a time when smart decision-making can yield really good results. There are great investment opportunities out there if you’re prepared to do the work to identify them.