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With 2021 ending, we are witnessing societal changes that will eventually shape the financial market. In fact, the Covid-19 crisis accelerated the development of new industries while emphasizing the role of others.
In this article we will be discussing 3 blooming industries and 22 companies that will thus play a predominant role in their market. Hence, their stocks might have a significant impact on your portfolio.
You can trade all the stocks mentioned below on CedarFX.
Technological innovations:
It comes as no surprise that within our increasingly digitized world, high-tech companies will continue to play a dominant role in the future of our society. While innovative start-ups might emerge, the renowned tech giants are probably going to maintain their role of leadership in the global economy.
For the time being, Artificial Intelligence applications and the Metaverse are increasingly attracting the interest of high-tech companies worldwide. The sudden rebranding of Facebook Inc. Meta Platforms Inc. hints at the potential of this upcoming industry. However, Zuckerberg’s company is not the only one working on the Metaverse. Microsoft has announced its effort to develop applications for the Metaverse and we are expecting big companies to follow along.
On the other hand, Google is fine tuning its AI to deploy a massive upgrade on its core product: the search engine’s algorithm. Likewise, Amazon, Apple and other tech giants are increasingly developing their AI applications to enhance their products and sell related services and products.
The organic growth of these innovations will heavily rely on processors and chip manufacturers. Hence, why every investor who intends to benefit from the upcoming technologies should also evaluate hardware producers.
Although these emerging innovations are still in their infancy, the most authoritative financial projections with regards to the Metaverse and AI are about $3 to $5 trillion in the coming decade.
The companies that currently have a large stake in the development of the Metaverse and AI applications are Apple (APPL), Meta Platforms Inc. (FB), Microsoft (MSFT), Intel (INTC), Qualcomm (QCOM), Google (GOOGL), Amazon (AMZN), Oracle (ORCL), Palantir Technology (PLTR).
Environment:
During the COP26, occidental countries showed higher concerns about the environmental changes of the planet and are investigating effective ways to tackle global warming. Although it is not clear yet what type of policies will be initiated, it is strongly suspected that the upcoming environmental policies will change the face of most industries.
However, certain companies have taken it upon themselves to start looking into this issue and tackle it with their own products. Others are restructuring their business to fit a better green narrative for their company.
The automotive sector has been at the forefront of the green revolution and has already established a Trillion-dollar company investing in green transportation: Tesla. Other major companies such as Ford and Volkswagen are starting to produce their own electric vehicles as well and are reportedly investing large capitals and engineering power to conquer shares of the EVs market.
Along with the automotive industry, energy producers are diversifying their business line and redesigning their production plants to fit tighter emission rules.
Regardless of your view on global warming, as an investor this shift cannot be ignored because it is yielding phenomenal wealth opportunities. Our top picks for 2022 are: Tesla (TSLA), Ford (F), Volkswagen(VOWG_p), General Electrics(GE), BMW (BMWG), E.ON(EONGn), Total SA(TOTF.PA), Ferrari (RACE)
Healthcare:
Since Covid-19 started, the pharmaceutical sector grew massively given its critical role for managing the pandemic. However, it seems that the Covid crisis is far from ending, leaving pharmaceutical companies' further room for growth. Additionally, governments are set to increase their fundings for healthcare infrastructures to keep up with an increasing demand for services. All in all, these elements outline a scenario where businesses involved with healthcare stand to profit further in 2022. In this sector, the most interesting companies are Pfizer (PZER), Moderna (MRNA), Johnson and Johnson (JNJ), Teva (TEVA), Bayer(BAYGn).
Conclusion
While it is not possible to predict with certainty which companies will boom in 2022, a diversification of a portfolio in these industries might be a winning strategy. Visit CedarFX to trade 190+ instruments with leverage of up to 1:500 and a minimum deposit of $10.
