What’s getting hot tomorrow? Which stock will pick up and which will go down? Is the USD going to raise against EUR? These are the thoughts that don’t let the short-term investor sleep.
Short-term investing is a gamble. It certainly works for some. But usually not for me. And not for you I guess. Otherwise you wouldn’t be reading this. Forget short-term investing. Let’s talk about five things that will be hot in the next 50 years. The following is just my option and is not a financial advice!
1. Virtual properties. The internet is reaching more and more people and devices every day. It’s already developed but there is a lot of further growth to expect. If you invest in good web sites, software products and mobile apps you may see a lot of growth in the next years. You may think 50 years is a lot of time and most sites won’t be there. For sure they will not exist in the same way as today. Don’t think they will disappear though. Nowadays there are sites from the beginning of the web which are still around and kicking. For example Hotscripts started in 1998 and is still here. Almost an eternity compared to the age of the web!
Good sites change but don’t disappear. And will be around in one or another shape after 50 years. Just like the best newspapers and magazines survived the World Wars.
2. Farm Land. The population on Earth is growing and good prices increase all the time. No one produces farm land. On the contrary – we lose it all the time due to soil erosion, growing deserts and pollution.
Considering the low real estate taxes I believe farm land is one of the best long-term investments one can make. Don’t just let it sit aside, use the land. This can increase your ROI several times.
3. Renewable energy. Green investments of all kinds will remain attractive. There might be a bubble in the current solar installments so I won’t go for quantity but for quality. I would buy companies or shares of companies who work in the renewable energy sector.
Patents and licenses in this area can also turn out to be amazing earners if you have the time to wait for the profits.
4. Biotechnology stocks. Similar to the above, I expect the bio technologies have a lot to grow. Buying stocks in promising biotechnology companies can yield a lot higher returns than a balanced general stock portfolio. Of course the risk is a lot higher.
5. Savings account. Tired of risky ideas? If you live in a stable country saving cash in the bank may turn out not bad at all. You know the interest barely beats the inflation but the magic of the compounding interest can do wonder. Just an example: if you invest $20,000 today at 5% yearly interest, and add $5,000 every year, you will have $86,000 after 10 years. The amount grows up to $203,000 after 20 years and to the stunning million and 210 thousands after 50 years.