The following is my
answer to a Quora question: “I am looking to make some alternative
investments in 2019. What would you
recommend?”
One area you might want to look into would be
technology funds, particularly in the areas of online retail. It is growing, and it will continue to grow as
more people move away from traditional retail and buy online. There is a pronounced shift in China and East
Asia, and that will drive growth in companies such as Alibaba and Tencent. Currently, their stock is underpriced due to
negative sentiment pertaining to issues such as the recent trade dispute
between China and the US. This is a
bargain, when we consider an extended investment horizon. China’s middle class, their domestic market, is
growing, and their consumption is at double digit growth. This means companies geared towards servicing
them are largely impervious to losing market share elsewhere. Their only pressure is in funding, debt
servicing and the export market.
Another area of growth, in the long term, would be
food. Food security is a priority for
many countries, and they are willing to spend billions to secure supplies and
maintain prices in domestic markets. It
would be a sound strategy to consider taking a position in companies that are
in the business of farming, agribusiness and related suppliers. Yet another underrated market with phenomenal growth
is actually pet food. The cost of the
ingredients to the consumer price is huge. This means they make far more profit than most
people realise.
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