Last night I had trouble sleeping, and for some reason, I started thinking about industries that are tanking and will be a value for investors in the future. So many of us are scared by the media when they throw out words like recession and depression. We automatically think we’re going to lose our jobs and all of our life savings. It’s simply not true. Yes, there are industries that are lagging, but the bulk of the economy is doing just fine. Circuit City filed for bankruptcy, but in my opinion, it has nothing to do with the economy. They were always the bastard child to Best Buy. They’re prices couldn’t compete, and their customer service was horrible. Sometimes, companies fail because they suck, not because the economy sucks. Getting back to my theme for this post, let’s take a look at the industries to keep an eye on and start buying at a value in the market.
- The Real Estate Industry. It’s down right now, and it’ll stay down for a little bit longer, until the foreclosure situation settles down. Start investing in REIT’s and mutual funds that focus on real estate. The prices are so cheap, and this market WILL come back up in the next five years.
- Renewable EnergyIn case you haven’t heard, Obama is now our president, and the democrats love talking about saving the environment. My guess is that they will pump a lot of money into efforts to continue to develop renewable energy sources. Look for mutuals and ETF’s that focus on companies dedicated to developing alternative energy sources.
- The Financial Sector. They are down and investors won’t touch it. Snag financial services mutuals and ETF’s heavy on this industry, because you can buy it at a fraction of the price right now. Once the housing market comes back and the government cleans up the home lendinig industry, this industry will flourish once again with baby boomers starting to retire.
When interviewed by the media about the current state of the economy, Dave Ramsey always responds by saying that he looks at the stock market right now as a “half off sale”. It’s this kind of approach to money and life that makes people successful. If you wake up every day worrying about what is to come, you’ll never get ahead. But if you look for opportunities to become wealthy, increase your income, and develop a new career, you’ll get ahead in life. Think about that this week, and start looking into the real estate, financial, and renewable energy sectors for value stocks.