Best Investment Sectors for 2012

Best Investment Sectors for 2012

In the following article, the best investment sectors for 2012 have been described. Investing in a specified sector, in the stocks of very well performing companies has proved to be highly effective for several investors. Apart from that, there are some definite advantages of investing into one specific sector..
A small list of some of the best sectors to invest, which are expected to give some really good returns in the upcoming years, has been explained here. A comprehensive reasoning of the said sectors is also included along with the list.

What are We Looking For

The primary objective of all investing is to gain maximum returns over the investments and also have the best possible rate of return. In such a case, when you select a specific sector to invest into, there are some merits which you should be looking for.
  • Assured sales is the first must have in the merits of the sector in which you plan to invest. What do the industries in the said sector manufacture, produce or provide should match with what people demand the most in the present times. In short, the manufacturing should have a market to sell goods. You will see that companies in pharmaceutical sector tend to have really good sales almost every year. The simple reason is that people need medicines under any circumstances and hence the assurance of sales.
  • History of the Sector is another point that you need to consider while finalizing the sector in which you want to invest. Basically, the industries should have shown some kind of breakthrough and a steady rise in revenue at some point of time in the past. Apart from that, a sustained revenue also indicates that the strategy and operations of the business are apt and well worked out.
  • Public offers and Trades is something that should definitely not be missed out. The common stock of companies is sold at an IPO, an Initial Public Offer. Checking the issue prices of shares, current prices of the same shares and the general trend in the past years indicates how the company is performing overall.
  • Sustainability of the sector needs to be checked. Logically, forecasting whether the current production of the sector would keep up in the future is something which you would have to check. Sadly for this last one, you cannot take the help of any facts and figures, it's purely based upon your own thinking.
Best Investment Sectors for 2012

Well, as of 2012, we are entering a decade where things are going to transit fast. Human lifestyle, society, civilization and mankind are going to experience a change at a drastic rate and also in a drastic manner. To cater to these needs of a new emerging, globalist society, the companies and their sectors are going to change too. Some of the sectors which are bound to perform very well in the near future, especially in this decade include the following.

1. Green Chip Companies
A personal favorite of mine, green chip companies are the companies, which research, develop, produce and deal in eco-friendly products. Let's face it. We are already facing an energy crisis and we shall be soon facing a material crisis. In such a situation, green chip companies would help us get proper inexhaustible and eco-friendly energy and material sources. In some cases, bio-tech companies also fall into the category of green chip companies.
(examples: Altair Nanotechnologies, Evergreen Solar, Inc.)

2. Metallurgy and Metal Related Technology
As human lifestyle is changing and mankind is running out of materials to make and own objects and utilities, specially engineered metals and related products assume special significance. Here in this sector, we are taking into view a broad spectrum of companies. These include, engineering companies, mining and forging companies, companies that are involved in casting and making alloy. On the whole, these companies are going to see a rapid rise in sales, as a result of the drastic material re-engineering that has started taking place.
(examples: ArcelorMittal, Zoltek Companies, Inc.)

3. Electronics and Software
Though these two fields are actually not integrated, there ever dynamic nature is forming the basis for modernization that we today call globalization. The modern world today, cannot survive without these fields. Tablet personal computers is one example of how much the society has become dependent upon this field. So fast has become the way of life that we feel the need to carry around our computer integrated with a mobile phone (a.k.a, a smart phone).
(examples: Apple, Microsoft)

4. Pharmaceuticals and Health Care
Modernization means a modern way of life, and a modern way of life means newer and newer health problems every day. Apart from that, our own fitness levels, immune systems and general health is substantially dropping down. Stress and stress induced ailments are adding to the long list of health related problems that we are suffering from. Hence pharmaceutical and health care facilities, which include gyms and fitness centers are going to see a substantial boom in sales and revenue.
(examples: Johnson & Johnson, Bristol-Myers Squibb)

5. Commutation and Communication
Transiting into the future means having more and more speed. By speed I mean speed for commutation and communication. Take a look at reality. Several South East Asian nations and European nations have integrated fast buses and railways into their transport systems, which cater to daily commutation. Further more, Internet and telecommunication are being embraced by several societies. Companies engaged in these sectors are going to see a drastic rise in their sales and revenues.
(examples: AT&T, Nokia)

6. Internet-based Companies
Internet-based businesses continue to thrive through advertisement revenue, despite global slowdown in revenue. With social networking becoming One of the most awaited IPO in 2012 will be that of Facebook, as it goes public. So keep an eye on Internet companies, as they are the future.
(examples: Google, Facebook)

Let me share a very nice statement that my economics and statistical analysis professor would often recite to us 'small, sleek, fast, quick and utility wise effective products are best sold in a globalized market'.