One of the most important and satisfying things about investing is picking up on a trend before others do. It can help you make money by jumping on an investment opportunity before others realize what you have. And, let’s face it, picking up on a trend before others can be a nice boost to the ego. The challenge, of course, is identifying these opportunities and acting on them accordingly. Here are three niche industries to take a look at this year that could pay off in coming years a la Peter Lynch style.
- Wearable Technology
Wearable devices such as the Apple Watch or Fitbit devices were supposed to be the next big thing. They do indeed have a niche following, particularly among those who use such devices to track their fitness. But there is also evidence the sector didn’t take off quite as quickly as some expected.
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Many believe today’s wearables are simply ahead of their time, and technology will garner greater levels of adoption down the road. That makes this sector poised for long-term growth.
“A lot of investors tend to look for short-term gains and that’s not going to happen in the wearables market; wearables are a long-term play,” IDC Technologies analyst Jitesh Ubrani told The Street.
In addition to today’s range of wearable devices, look for others such as augmented reality eyewear and affordable, but stylish, apparel items to gain popularity in the coming years.
The machinery industry is a wide-ranging sector, but there’s at least one segment within machinery that’s poised for long-term growth: industrial air compressors.
As one piece of research notes, the industrial air compressor market will enjoy steady compound annual growth rates through at least 2027. The combination of growing industrialization in developing countries and advancement in compressor technology will be a major factor in the sector’s growth.
Another reason is that many other seemingly non-related industries depend on compressed air to thrive.
“Not many people consider how compressed air is critical to the stopping power used in the braking systems on freight trains, fire trucks and even roller coasters,” says Jacqueline Gay, Marketing Services Manager at Quincy Compressor.
The marine, energy, food and beverage, packaging and plastic and semiconductor industries all depend on compressed air as well. The technology is growing with regular everyday folks.
“Compressed air also appears closer to home for inflating tires, painting and powering pneumatic tools for a wealth of DIY projects,” says Gay.
If you follow politics even a slight amount you know the cannabis and marijuana industry has gained momentum. In the past year, five states have legalized medical cannabis, and the number of states where recreational marijuana is legal jumped from four to eight.
Those numbers are likely to expand in the coming years, opening up a host of new opportunities for investors. There are a number of new cannabis-related products and services on the horizon, including a delivery service for card-holding patients, designated humidors and even cannabis floral arrangement companies.
“It’s a unique industry that is transitioning from a black market business to a white market business,” MedMen general partner Chris Leavey told Forbes. Even alcohol companies have taken notice, with some worried consumers substituting marijuana for other options like beer and wine.
You already know when it comes to investing, there are no guarantees. And sometimes niche industries can be an even bigger risk. While the three industries mentioned here may not blow your socks off in the next six or eight months, all three are set up for a run of solid and steady long-term growth. And it presents a potential hunting ground for Peter Lynch style home runs.
Article by Kayla Matthews