Top 3 Sectors for Millennial Investment
Nearly all of my clients are millennials and they are always looking for the next big thing to invest in. However, many of them have consumer and student loan debt and are adding to that debt with homeownership. So, even though many of my clients would like to be risky, many simply can't afford it. These 3 sectors will give millennials the growth they are looking for without being overly risky (depending on the investment, of course):
Didn't the tech boom happen 20 years ago? Think again. Information technology is a broad sector that includes companies from software to hardware to equipment. This is an ever-changing sector with some high high's and low low's however, it is always innovative. The most well known and lucrative investments in this sector are Facebook, Apple, Amazon, Netflix, and Google (Alphabet). These companies dominate the market and have the capital to acquire and build new technologies. Tech companies will be a hot investment for years to come.
2. Financials (specifically payment processors)
Financials are a fantastic investment, and no, we're not talking about bulge bracket banks. Did you know Visa and Mastercard account for 80% of the card spending in the United States? With the rise of new payment technology coupled with the fact we mostly use credit cards for purchases, payment processors are on the uptick. In addition, payment processors have a lot of cash on hand and can acquire companies that are compliant with new methods like bitcoin. With great margins and a room for growth, this is a market to keep your eye on.
Industrials? For millennials? Am I kidding? No I'm not! New policy changes have led to a strong industrials sector and an increase in future growth. Most jobs in 2018 have gone towards this sector making industrials a newly enthusiastic sector with great gains. With a spur in investment/capex projects and an increase in U.S. infrastructure spending, there is potential for internal rebuilding of the United States for years to come.
Want to get in on any of these investment but unsure of what companies to look for? Start with index funds or ETF's that track these industries. From there, look at the underlying companies that the investment has to see if this is a good fit for you. Index funds or ETF's that track these sector can give you maximum exposure without all the risk of investing in simply one company. Interested in learning more? Contact me here!