I’m pretty sure I’m not the only Financial Advisor who’s constantly asked the question, “What industries or stocks are you watching?” However, I try to take a unique approach to answering this question.
Before listing off stock symbols, I share my process of determining what industries and companies I closely monitor.
I’m both a lifetime investor and a Financial Advisor. I focus on helping individuals plan for and succeed in retirement, which shapes my approach to investing. Except on rare occasions, I’m not searching for short-term gains; I’m looking for long-term opportunities.
Long-term opportunities lie in solving current and developing problems, which is where I start my search for what to watch. When looking at the rise and potential of AI and autonomous vehicles, which many experts believe will generate in excess of $300B in revenue by 2035, there’s a glaring problem that must be addressed--energy infrastructure.
The US is not currently equipped to handle the needs of electric autonomous vehicles. Our power grid and energy production will need to shift to meet these rising demands.
While the type of energy that will solve this problem isn’t clear, what is clear is that fossil fuels aren’t the answer. This brings me to one of the niche industries I’m watching--SMRs, which are small modular reactors. SMRs are believed to be scalable nuclear energy generators that can efficiently handle the needs of the rise in autonomous vehicles and the vast array of servers needed to support them. Unlike traditional power plants, SMRs produce a large amount of low-carbon electricity and are a fraction of the size of a conventional nuclear reactor.
How do you determine what industries and companies to watch? Share below.
Image Source: https://www.iaea.org/newscenter/news/what-are-small-modular-reactors-smrs
Disclaimer: Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. Opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.