Hey Taylor – We spend a lot of time talking about economic unrest and inflation and such—what about the flip side? What industries are doing well and might be worth an investment? – Paul
Hey Paul – Whether it’s the media or human nature, it’s definitely more common for us to dwell on problems than it is for people to focus on the good things that are happening. While people’s struggles are very real, so are the successes we’re seeing in a lot of different industries, especially those related to tech. Here are three that are booming right now and for the foreseeable future.
–1. AI. It should come as a shock to no one that artificial intelligence is driving a lot of economic activity. People are still figuring out how to best employ computer learning, but there’s no doubt about its usefulness and no shortage of resources being pumped into AI development. In addition to the big names like ChatGPT and OpenAI, hundreds of smaller startups are getting into the game and testing the limits of where this tech can take us. You have to be careful with investing in AI since we’re still seeing which companies will rise and which might flame out, but it’s clear that AI has the potential to be one of the primary drivers of economic growth in the coming years.
–2. Healthcare. Year after year after year, healthcare is among the fastest growing sectors in the economy. There will never come a time when humanity grows tired of trying to live healthier, longer lives, and therefore we will always see tons of money flowing into the R&D departments of all the major healthcare companies. Whether it’s pharmaceuticals or dental equipment, the products will keep evolving and getting better and the economy of health will continue to grow. We’ll also see more overlap between healthcare and AI in the coming years, and that will likely lead to some pretty robust investment opportunities.
–3. Robotics. Sticking with technological development, improved computing usually leads to improved machinery. There’s a huge push across all industries to improve automation, so developers are working overtime to deliver the systems that will help all types of commerce run more efficiently. In some regards, automation will replace living workers with some type of robot. The other side of that coin is the jobs created by the companies developing the automated instruments. It’s all part of the process of innovation, and investors and consumers are usually wise to back the companies that are doing the innovating.
It’s an exciting time to be in the tech sector, with innovations unfolding and lots of potential on the horizon. While there are plenty of other industries experiencing a little growth, it’s the technological advancement that’s really driving things forward. Thanks for the question!
Taylor Kovar, CFP®
CHIEF EXECUTIVE OFFICER
