Due to changes at the global level like protectionism and political chaos, businesses are facing certain changes and ongoing challenges. Nevertheless, there’s always a way for a business to survive despite the changes and challenges. Having said this, the business world is never short of ways to fly high. This also holds true for the stock market.
New opportunities were revealed at the Credit Suisse (CS) Global Super Trends Conference. Nannette Hechler and Daniel Rupli, Head of Economics and Research & Head of Single Security Research respectively, looking at impactful societal changes. They feel these can bring huge advancements in the investment field.
Various banks say that the “Millennials tide” has begun. This tide will drive the crowd of young people age 39 and below. Reports explain that they are dedicated to drafting the future of businesses. So, what sectors should you be paying attention to right now according to Credit Suisse?
Stock Market Sectors Affected By This:
Security and Defense Stocks
It will give a hike in security and defense investments as this sector holds more importance in things like public security. Further, terrorism and technology threats and the geopolitical situations of Syria and China are the centers of concern for the world.
Another area which is affected is the introduction of the hypersonic missile system and massive data breach in Russia that is a pressure point for countries like the US. Also, the increasing concern against terrorism in the USA is focusing more on defense investments. Similarly, defense security for privacy is also much needed. Hence, cybersecurity is extremely important.
The market opportunity continues to expand. The Weapons Detection Systems market will grow from $5.3B in 2020 to USD $7.5B by 2025, at a Compound Annual Growth Rate (CAGR) of 8.2%. By 2020, USD $1.5B will be spent on urban security in North America.
An Atlanta-based startup backed by a wealthy Canadian is preparing to market a security system developed by MIT Lincoln Labs that could detect public shooters before they fire. For those looking at companies in this sector, for instance, MIT has licensed the technology exclusively to Liberty Defense to bring it to market. Liberty Defense (SCAN.V) is ready to tackle the security challenges in the urban security market with its groundbreaking HEXWAVE product. Click Here To Read More On This Major Breakthrough!
Clean Energy Stocks
Due to awareness and pressure by the public, the government will focus on investing in the creation of renewable energies.
Credit Suisse report says that many electricity companies are on the way to inculcate these changes. And even the bank is asking the large producers to make solar and wind energy for the projects of renewable energy. Such moves will bring huge profit without any recurring in-out charges.
According to the reports. It is quite sad to know that there is still a lacuna of this awareness in Europe Transport &infrastructure
Credit report says that transport sectors have a bright business future. One of the greatest examples of this is the Thailand Airport. Due to the high numbers of passenger crowd for the last 10 years, it has gained a triple profit. Another example is Vinci. It has grown impressively by acquiring Gatwick Airport and now it is planning to acquire Aeroports de Paris.
In the context of infrastructure also, the world is heading forward. G-20 projects are the best example of this growth. It is estimated that by 2040, $14.8 trillion will be invested. Even the US and China are planning for a combined trade in infrastructure.
Following this growth, the Federal Reserve of America would slow down the interest rate benefiting the companies investing. MSCI World Infrastructure Index mentioned a profit hike by 9.97% by 29th March. Sectors like utilities, telecommunications, Airport, etc. were included in this index.
Credit Suisse says 5G technology will also see growth. As we can see, South Korea’s introduction of commercial 5G at the end of the last year and the USA also headed towards better internet speed. Next, Japan, China, and Europe are expected to be in this run, most likely after 2020.
After such introductions, the dealers of 5G networks are expecting to see a hike in their profit. Huge investments are awaiting as people will keep on modifying this sector.
The report says, Telecom Italia & Vodafone Italia will enter into an agreement for 5G network sharing and in such case, more towers and bandwidth installments will hike investments.