We are living in uncertain times. Knowing where to put your money to be sure of a constant stream of investment is hard. Here we offer some suggestions.
As the times are tough, it is hard to know the industries worth investing in now. While no industry is bulletproof and a completely safe investment, there are some that offer more security that others. Before we begin it is important to begin with a disclaimer. Any investment you make can end in a loss or win; it’s like gambling just take a look at the full review of Just Spin here. Therefore, as well as choosing some of the “safer” industries in these uncertain times, you should also spread your money across companies.
Defining a safe investment
When we claim these investments are safe we suggest that the returns are predictable and to a degree guaranteed. The reason government treasury bonds are seen as a bellwether for the confidence of investors is because there is predictability and therefore your money is secure. However, the returns will be lower than if you took a riskier decision.
A way to assess the security of investment of an entire sector, you should look at the usage of the products and services over a period of time as a fair means of assessing the strength of the investment. 20 years ago social media sites would have been a high-risk choice, as they were relatively unknown and the usage low. However, now with users in the billions, you can be a little more certain of their security. Yet, to contradict this, are you sure this will be the case in another 20 years? What is safe to suggest is that people will still be eating food that far into the future, so catering and food manufacture is an industry that will never go away.
Food
Let’s start with this example of a sector where there will always be demand. Businesses such as usgrainstrading.com that work with grains, cereals, beverages, and other processing and packaging companies come together to be the food industry. The products of this sector are essential to human existence. Therefore, the government takes a strong interest in regulating the businesses in this area and so it is one of the safest for investment.
Fast-Moving Consumer Goods (FMCG)
FMCG products are those that we use every day and therefore there is a continuous demand. Here we are looking at products such as soap, detergents, toothpaste, batteries and paper products. The profit margins on these products are low and it is a highly competitive arena. However, the volume is huge and so you will receive regular dividends and so a regular income.
Textile
People will always wear clothes. Therefore, although fashion is a dynamic and risky area for investment, you can find safer places for your money. The production of the raw materials offers a more secure place for your money. So, look to the production and processing of materials like cotton, silk and linen.
Compliance
Rightly or not, we have a host of laws that make the world in rules and contain us all within their boundaries. These laws have been around for centuries and are going nowhere soon; if anything we are becoming even more bureaucratic as the years pass. Therefore, unless there is a complete disintegration of civil order, your money is safe in companies that deal with compliance issues. Obviously, if there is a complete breakdown of the law, you probably won’t be so worried about money as it will have little value anyway. You will likely be trading in cans of baked beans and toilet rolls.
Utility companies
Energy security is essential enough to our existence that companies wage wars to ensure our needs are met. We need electricity for our lifestyles now and other fossil fuels to keep us warm or cook our food. We need the treatment and transportation of water with some futurists predicting that water will be the cause of future conflicts. Therefore, if the demand is this high then your money is going to be safe. There are some risks, as the companies will be at the mercy of regulation and politics. However, you have high demand and a better rate of return on your money, so it might be worth a small amount of risk.
Healthcare
With humans living longer and more people succumbing to longer term illnesses, healthcare is a boom industry. Obviously, an outbreak of a pandemic makes the healthcare sector seem even more appealing and we should recognise that these will be a regular occurence in our lives. Betting on such things are vaccines and the success of specific drugs takes a high-level of sector knowledge. Yet, investments in single-use medical devices such as face coverings might be a strong option.
Technology
Finally, we suggest the technology sector. Innovation is never going to go backwards, so we are always going to live in a digital world. The signs are that the information age will continue and develop to the point when machines will be talking to each other. However, this is a boom and bust sector with new innovations wiping out older products in the blink of an eye. Therefore, although the returns will be high, you should look to keep your investment brief. This is an area for short to medium term investment.
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