Top 5 areas for investment in 2024
Let us consider the factors that allow us to weigh up the situation and find promising sectors for development
p
bYEREVAN, July 25. /ARKA//b.nbsp; The financial market is a dynamic environment influenced by internal and external processes. This complicates the task of choosing a sector for investment and at the same time provides material for analysis. Let us consider the factors that allow us to weigh up the situation and find promising sectors for development.br
/p
p
/p
p
Criteria for evaluation of investment attractiveness
/p
p
/p
p
Prospectives of securities of companies in different periods is not the same. In order to independently assess the investment attractiveness of industries, you should analyse market trends based on several criteria such as:
/p
p
/p
p
- sustained growth or the ability to make a technological breakthrough in the near term. Such industries will be of interest to the global market,
/p
p
- upcoming regulatory changes,
/p
p
- global demand. Promising sectors for investment are those related to meeting global needs and where demand outstrips supply and there are more potential triggers for demand growth than for supply.
/p
p
/p
p
Demographic trends.
/p
p
/p
p
Ability to withstand a recession. Companies engaed in the production of services and goods that are not (or little) dependent on economic conditions.
/p
p
Recent developments, technological advances.
/p
p
Dynamics of consumer behaviour.
/p
p
The economic and political situation in the country, where the industries are represented. For example, when there is a budget deficit, the authorities are looking for a source of income, which may result in a greater tax burden on companies. Sanctions often shift the focus to import substitution and production expansion.
/p
p
Studying these factors is important both for assessing the current situation and for forecasting.
/p
p
/p
p
Industries with high investment potential
/p
p
/p
p
Based on the results of the first quarter of 2024, we can identify the five most attractive market sectors for investment
/p
p
/p
p
b1. Technology /b
/p
b /b
p
b /b
/p
b /b
p
The growth potential, innovativeness, inclusion in business and everyday life make the technology sector an optimal investment destination. The technology sector includes companies dealing with software and hardware, electronics, internet services, etc.
/p
p
The blockchain sector is of great relevance. Blockchain is a technology for storing, verifying and exchanging data over decentralised networks.
/p
p
/p
p
A significant area is robotics: 3D modelling, sensors, 5G, cloud computing and machine vision (a method that allows equipment to see the manufacturing process, perform analysis and make decisions).
/p
p
/p
p
One of the newest trends is quantum computing. This is solving problems using atoms, molecules and other structures, enabling the synthesis of new materials and medicines.
/p
p
Cloud resources and cybersecurity are in huge demand. The covid pandemic provoked a surge of digital solutions that have become part of everyday and business life, including the basis of commercial and educational processes. The crisis period was also an ‘indicator’ that revealed the adaptability and resilience of the industry.
/p
p
/p
p
In recent years, there has been a rapid leap in the development of artificial intelligence and machine learning. The products and services being developed are widely used in various fields, from healthcare to the production of autonomously driven transport.
/p
p
You can also look at the home technology market. ‘Smart devices, automation, energy-saving appliances and connected security systems are popular with consumers because they simplify household processes and are environmentally friendly.
/p
p
The factor that increases the universal demand for the activities of technology companies is their involvement in solving global problems. Innovation is paving the way for preventing disastrous climate change and creating eco-friendly tools.
/p
p
/p
p
iPossible risks /i
/p
i /i
p
i /i
/p
i /i
p
International interest in the development of technology has resulted not only in discoveries, but also in increased regulation. Regulatory authorities are putting legislative pressure on large technology companies, tightening data storage and privacy requirements. It is also important to remember that the development of the industry in a particular country can be hindered by a tense geopolitical environment.
/p
p
/p
p
The innovative approach of technology companies is associated with both potential breakthroughs and unpredictability. However, even with quite high volatility, their shares are considered one of the most promising assets in the market. Many investors are willing to take risks, expecting big profits.
/p
p
/p
p
The Financial Times wrote about the boom in artificial intelligence and cited the performance of graphics processor developer Nvidia. The company added more than $1 trillion in capitalisation in the first three months of 2024. That's about one-fifth of the total quarterly gain in global stock markets. And in June 2024, the company's capitalisation passed $3.34 trillion. It is also indicative that Japanese semiconductor-related stocks are leading the way in global markets. The national Topix index rose 16.2% in 2024.
/p
p
img width=669 src=/upload/medialibrary/12e/12e1841c0417a73b7a0d316ad3a2e623.jpg height=458 title=фридом alt=фридомbr
/p
p
/p
p
b2. Healthcare /b
/p
b /b
p
b /b
/p
b /b
p
The industry includes pharmaceutical and biotechnology companies, healthcare providers, and equipment manufacturers. In recent years, personalised methods and tools of digital medicine have been recognised as effective.nbsp; During the pandemic, services and gadgets for remote interaction between doctor and patient, for remote monitoring of vitals have developed seriously. Attention to mental health and ageing issues is also increasing, which opens up additional opportunities for new services and industry development.
/p
p
According to forecasts from the US consulting company Global Market Insights, the global biotechnology market will exceed $729bn by 2025, with a compound annual growth rate of 8.3%.
/p
p
/p
p
iPossible risks /i
/p
i /i
p
i /i
/p
i /i
p
The priority and global nature of healthcare issues is a reason for the active involvement of authorities and regulators, so investors should monitor the impact of changes in legislation on the companies' operations. The geopolitical situation is also important, as supplies are often organised internationally. Finally, the turn of medicine to advanced technologies, such as artificial intelligence and gene editing, has an ethical aspect that may affect the activities of companies.
/p
p
Market participants working on innovations in medicine are attracting a lot of attention and will gain popularity, so they are becoming a relevant and promising area of investment.
/p
p
img width=669 src=/upload/medialibrary/eab/eabafaf11c22983159be84d9faabe573.jpg height=458 title=фридом alt=фридомbr
/p
p
/p
p
b3. Fintechnbsp;nbsp;nbsp;nbsp;nbsp;nbsp; /b
/p
b /b
p
b /b
/p
b /b
p
The market segment includes companies engaged in the development and application of technologies in the financial sector. These include digital payments, automated account management, and peer-to-peer lending, which is a loan origination service in which lenders are not only banks but also individuals.
/p
p
Financial technologies help manage risk and uncover fraudulent schemes, improve fund transfer systems and speed up business operations. This increases customer confidence and demand for services, and therefore leads to the success of companies and investors.
/p
p
/p
p
iPossible risks /i
/p
i /i
p
i /i
/p
i /i
p
The popularity of the sector's products among users may result in overvaluation of securities, causing a ‘boom’ in the market and then a rapid decline. In addition, fintech regulations remain unstable and unclear, threatening to reduce the performance of companies and even block their activities.nbsp;nbsp;nbsp;
/p
p
img width=669 src=/upload/medialibrary/9e0/9e02d53b6e2b41e63507df50a7578767.jpg height=458 title=фридом alt=фридомbr
/p
p
/p
p
b4. Agriculture /b
/p
b /b
p
b /b
/p
b /b
p
The sector includes crop and livestock farming and the supply of raw materials for food production. The processes of this sector ensure food security for the whole world, so the companies involved are in constant demand.
/p
p
Agriculture is developing thanks to the introduction of GPS tracking systems, satellite imagery, genetically modified organisms and CRISPR (a method for modifying DNA fragments). This helps to prevent the negative impact of climate factors and to function with limited resources.
/p
p
The technological prowess of companies attracts investors willing to invest in progressive industries. In addition, the trend towards plant-based diets and the search for alternative proteins and crops is opening up opportunities for the development of new areas of the market.
/p
p
/p
p
iPossible risks /i
/p
i /i
p
i /i
/p
i /i
p
The performance of companies operating in the sector is strongly influenced by seasonal factors. Low yields reduce production volumes, high yields reduce prices and increase competition. In addition, companies need to adopt a technological and environmentally friendly approach to improve performance and meet the requirements of legislation, customers and partners. Consequently, they need to constantly invest a lot of resources in equipment upgrades and alternative methods.
/p
p
img width=669 src=/upload/medialibrary/4ce/4ce0b4cd5af870d207ca4cac99ab5d4c.jpg height=458 title=фридом alt=фридомbr
/p
p
/p
p
b5. Telecommunications /b
/p
b /b
p
b /b
/p
b /b
p
This sector provides the infrastructure for the exchange of data worldwide via the Internet and telephone. This includes satellite and cable companies, wireless carriers and Internet service providers, and manufacturers of relevant equipment.
/p
p
The stable growth of the telecoms market is due to the popularity of devices and services that provide services remotely. It is considered a safe investment, as the demand for wireless data sending persists even during economic downturns.
/p
p
/p
p
iPossible risks /i
/p
i /i
p
i /i
/p
i /i
p
Rising consumer expectations and advances in technology require companies to continually invest heavily in adapting and improving products. In addition, costs are increasing due to a shift to more environmentally friendly materials, for example, leading sector players are abandoning lead cables. This can lead to inefficiencies, loss of profits and share sell-offs.
/p
p
img width=669 src=/upload/medialibrary/3fe/3fede6b0273c4143229c07cc041acc4b.jpg height=458 title=фридом alt=фридомbr
/p
p
/p
p
iSummary/i
/p
p
/p
p
As you can see from the material, when choosing a sector to invest in, you should focus on companies involved in technology, healthcare, fintech, telecoms and agriculture.
/p
p
At the same time, the main criteria for evaluating the industries are:
/p
p
- global demand
/p
p
- alignment with emerging trends
/p
p
- innovativeness
/p
- sustainability.br
br
inbsp;This article was prepared as part of the joint project Year of Investing in Oneself by ARKA, AMI Novosti-Armenia news agencies andnbsp;/ia href=http://ffin.am/en/iFreedomnbsp;/i/aa href=http://ffin.am/en/iBroker Armenia/i/aa href=http://ffin.am/en/i./i/abr
i /i
p
i /i
/p
i /ibr