The last few years have seen record growth in the equity market. Retail sellers have been able to keep the bull raging, thanks to the extra stimulus injected into the market. The market has been on a positive incline for a high percentage of the market, but some sectors have fared better than others. Here is a list of six market sectors that have fared well in the stock market recently.
Technology is at the forefront of almost every sector of the market. Technology has streamlined the logistics of shipping from the manufacturer to the consumer. Technology has facilitated the mass production of medicine, consumer goods, and services.
The technology sector is constantly growing, so it is no surprise that investors and traders are heavily purchasing tech shares. The most highly valued companies, such as Facebook, Google, and Tesla, are often mentioned but small start-up companies are worth investing in also. This provides an opportunity to help a company and an investor or traders’ investment grow.
Deciding which company to invest in can be a tedious task. Everyone knows, trying to predict the market can be similar to gambling. Tools, for example, like the NTLA stock forecast, can make this research easier, helping you decide which companies are worth your time.
The industrial industry is at the heart of the technology revolution. This sector produces finished products for a variety of industries. The bulk of the industrial sector derives its value from the manufacturing of construction goods. This sector of the market also produces a variety of industrial goods.
Multiple industries rely on the industrial sector to produce goods, such as hospital beds and machinery. Certain industries in the industrial sector are recession-resistant. Industries like the healthcare industry are always in need of goods.
The medical supply industry utilizes industrial goods to manufacture gloves, diagnostics tools, and for the handling of hazardous material. A combination of all these factors makes the industrial sector an intelligent investment choice.
Manufacturing turns raw material into usable products for consumers. The revolution of manufacturing has facilitated an explosive growth of the middle class that allows the modern era to exist.
Mass production has facilitated a decrease in production cost while increasing output numbers. Individuals in this newly declared larger middle class could now afford a comfortable lifestyle due to an increased income and cheaper cost.
There will always be a demand for manufacturing. Some areas of the manufacturing sector have fared better overall than other sectors in the economy. For instance, toilet paper or food is a necessity that consumers will always need, even during a recession.
COVID-19 has reminded us how much of a necessity our healthcare system is. The healthcare market is worth over $100 billion and is expected to continue to rapidly expand. By 2026, the healthcare market is expected to be valued at over $600 million. Because of this, the healthcare market is marked as a sector with an optimistic outlook because of the high demand for medical treatment.
The material sector is one of the most important aspects of the economy. Everything from grains to metals and fertilizer is discovered and retrieved by industries in this sector.
Batteries for electric cars require lithium, which has to be retrieved from the earth and purified. As we transition from our oil dependency to a more sustainable form of energy, industries in the material sector will be forced to research cleaner methods of retrieving raw materials.
This sector is ripe for investment and growth. Due to COVID-19, the material sector is experiencing a price increase for shipping. This price increase has been passed to buyers with little resistance. Even with this factor, the material sector still saw modest growth in 2020 and is expected to continue to grow.
The energy sector provides the economy with the fuel it needs to thrive. From oil to coal energy and various chemicals, the energy sector deals with anything used to power the economy. This sector can be divided into two sections: renewable energy and non-renewable energy.
Fossil fuel is becoming obsolete and renewable energy is taking its place. An astounding 777,000 people are employed thanks to renewable energy. Decreasing technology prices and increased demand for sustainable sources of fuel have aided in the growth of renewable energy. There are numerous companies worth investing in the energy sector. There is a constant need to find cleaner and more efficient methods of fueling the global economy.