Tech-related and social factors are making the emerging cannabis, data security, blockchain and electric vehicle industries attractive to self-directed investors.
Back in February—during a tumultuous couple of weeks on the stock market—the Dow Jones’ sharp decline got investors’ attention, though not necessarily in a good way… or was it?
Stocks were being dumped as people panicked…but this may simply indicate the investing environment is ripe for a new look at what’s hot and what’s not. Factors that may affect investors’ choices could be tech-related, and social factors are influencing certain markets today. It’s also putting emerging industries and startup companies on the watch list for investors with self-directed retirement plans who are looking for alternative assets to include in their plans.
Let’s take a look at four industries that are catching attention in a good way:
Medical marijuana has the potential to meet many people’s needs, and some countries see it as a possible replacement for some pharmaceuticals. As America’s population ages and the incidence of serious diseases continues—coupled with the evolving compliance and regulatory matters around marijuana—the industry’s expansion could put it on the radar of self-directed investors who want to invest in marijuana farms and other privately held cannabis-related enterprises.
It seems every week we hear a report about a major data breach at a nationwide or global company. The SEC published new guidelines for public companies to disclose privacy breaches and consumers are waking up to data privacy concerns and the risk of cyber theft, which is fueling growth in the cybersecurity sector. There are large corporations dedicated to this, as well as startups seeking funding. Digital forensics and data security technologies are hot!
It’s the basis for cryptocurrency (like Bitcoin) and the investment world’s been gaga about it. This is partially because blockchain is finding other applications outside of the financial world such as data storage in the cloud, digital ID protection, and securing sensitive documents (blockchain technology allows digital information to be distributed but not copied). Blockchain energy consumption also affects renewable energy requirements, which could spur a tangential investment market.
Electric cars and trucks
There’s a lot that goes along with electric vehicles—the batteries and battery technology/innovation, charging stations, and the growing internet of things and smart technology. Investors who want to get in on this transportation sector have an open road ahead.
These industries, and others that reflect the social and technological issues of our day, need capital to grow into their potential. Savvy investors who self-direct their retirement plans can think way outside the box (or portfolio) to include private placements in these and other social-techno emerging companies as part of their plans.