Tuesday, March 10, 2009

Key Business Growth Areas

There are several areas of the US and Global economy that should experience significant growth in the next several years making them great investments with strong potential returns. Looking to these areas will pinpoint key technologies and individual companies that should outperform the market and will make great entrepreneurial opportunities. These areas are Energy, Healthcare, Bonds/ Guilts/ Treasuries, Computing, affordable rentals and Green Enterprise. Here is a breakdown of each area of growth in more detail:


One of the most significant growth area will be utilities and energy companies, particularly in emerging economies such as China and India who do not have strong infrastructure in place. This will lead to a boom in power generation as consumer and industrial demand increase at a constant an unabated pace. Even though these economies will experience recession and downturn due to the current global climate they needed this chance to catch up with their growth before they reach a cataclysmic infrastructure collapse. The fact that so much output is necessity and basic products essential to sustaining the first world way of life will undoubtedly save them from significant depression and enable them to clear a recession by 2011.

America and Europe will continue to increase their demands at a slower rate as economic downturn has a greater impact and where greening of energy sources and particularly energy utilizes (bulbs etc) become more economical. However as recycling (eg Smelting etc very energy intensive) and computing power increases this will pick up alot of the slack.


Whether the markets crashed or not alot of people are due to retire and or have retired and need to take annuities to finance their retirement. This will be a huge growth area and people will be looking to make reduced resources (401k and home equity) go further. Cashflowing investments will fall into this category and that will make an interesting contrast to fiscal instability of the asset classes normally used to finance such annuities.


A greying population means a huge growth in Heart, Cancer and Brain related diseases. Barriers to entry to all markets are huge so expect to see the existing companies continue to grow and provide safe returns.

3)Bonds/ Guilts/ Treasuries

Flight to safety will continue for the foreseeable future, this asset class has been damaged by the reduction in credibility of the rating agencies (who are utterly incompetent0. Expect a strong recovery over the next 3-5 years

4) Computing

We have not seen the end to computing revolution, whilst it is hard for mature companies such as microsoft and google to continue double digit growth there is no doubt that we have only seen a fraction of the impact that computing will have on our lives. Look for robotics, alternative control methods (optical input) and personal assistant companies to rise to the fore. This bodes well for all fibre optic telecoms as data transfer will become more and more critical and infrastructure means high barriers to entry. Watch also for the emergence of city wide wi-fi systems.

5) Affordable Rentals

Whether the american consumer belives it or not and no matter how much the government denies reality to themselves the market has to bottom out and unless the governemtn pays off a significant percentage of the mortgages of the millions of people facing foreclosure, they cannot afford their houses, never could and the inflation the governments solution is creating will result in them being even less able to afford the property in a few years. Therefore affordable rental units people can afford that will allow them to put themselves back on their feet after bankruptcy and foreclosure woes will be a boom market. These are not hi end condos or any other such development as was being flung up during the last 10 years. It is more the rent controlled properties such as those of Manhattan.

6)Green Enterprise

The world is going green not through choice but through necessity. Higher gas prices, electricity costs etc mean that consumers and businesses have to green up to reduce costs. Expect to see diesel making a strong entry into the US market, increased sales of energy saving lightbulbs and devices and energy saving devices.

Also with the ever increasing water shortage expect to see water recycling and re filtration come to the fore as it becomes a necessity. Waste water utilization the middle east, Australia and the west coast of USA will be one of the boom industries of the next 15-20 years.

Copyright Jonathan Rose 2009 - Creative Commons License

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