There are investment concerns and opportunities pretty much any way you turn. Healthcare looks great, but what about the costs associated with treatment? Technology is improving every day, but what’s going to happen with possible regulations? Is the FED going to pop our bubble?
Plenty can happen so let’s explore it together.
The FED
The FED doesn’t appear like it’ll stop its asset-buying program and accommodative monetary policy anytime soon, and it said just that in its most recent meeting.
That’s a good sign for the economy and for certain sectors. The industries that find the most favor are those that use heavy borrowing to facilitate growth efforts. These include construction, retail, information technology, transportation, and healthcare.
Commodity Prices
We continue to see a rise in commodity prices. Copper, oil, and lumber are all near record highs. I believe we’ll continue to see a steady increase in the price of copper. Copper is used in electronics, and with the further development of new technology, electric and autonomous vehicles, and green energy…the demand for the metal is just getting started.
Big Tech
Silicon Valley is bracing for possible regulatory troubles. There’s a new head of the FTC and she has her gloves on. Big tech has come under increased scrutiny in a few areas, including content, privacy, and antitrust. This causes investment concerns.
The federal government has a problem with social platforms and some of the content users post on their sites. There’s a thin line these companies walk because they can’t censor speech and they can’t promote speech. But some people post very harmful and hurtful things.
Also, antitrust cases are likely to come in full force because some of these companies are so gosh darn huge. They have so much pull, so much money, and too much market share (in a lot of cases).
What’s more, they no longer hide that they harness user data to make money. How much they sell to other parties and what they sell isn’t entirely known, but their privacy issues are also coming to head.
With all of that said, compliance costs are going to increase. What those companies look like and what they’re allowed to do will likely look different than what it is now. Only time will tell what happens to these companies.
Healthcare
I’m reading and hearing more and more excitement about the healthcare space and the investment opportunities that lie within. The speed at which the globe was able to produce three or four viable and useful vaccines for Covid is incredible. I heard today that it’s the first vaccine to be created in less than 5 years.
The global population is getting older by the day. Not only that, but the baby boomer generation is around retirement age, so they’re going to require more medical attention.
Prescriptions, medical devices, new and improved medical technologies are going to treat and possibly cure more and more illnesses.
Telemedicine looks to be a great investment opportunity. Last year, medical attention was quite high but 90% of that was done in person. Virtual visits, remote monitoring, and in-home testing will grow in popularity.
Investment concerns and opportunities abound, I’m excited for what’s to come in the tech and healthcare spaces.
Disclaimer:
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Jacob Sensible is a financial advisor with decades of experience in the financial planning industry. His journey into finance began out of necessity, stepping up to support his grandfather during a health crisis. This period not only grounded him in the essentials of stock analysis, investment strategies, and the critical roles of insurance and trusts in asset preservation but also instilled a comprehensive understanding of financial markets and wealth management. Jacob can be reached at: jake.sensiba@mygfpartner.com.
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