To say that 2020 has been a wild year for investors is an understatement. The year started off the same way 2019 ended with clear momentum as investors embraced a “sky’s the limit” mentality. But the COVID-19 pandemic wreaked havoc on global stocks and by March, many major indices worldwide erased not only all of the gains for 2020 but from 2019, 2018, 2017, and parts of 2016.
A swift and sudden rebound ensured in global stocks as central banks offered a jolt of much-needed confidence. Investors returned to the stock market and picked up stocks at bargain prices.
Among the many stocks that outperformed benchmark indexes are those that dedicate themselves to solving the problems of the future. “We believe in the growth stocks that are investing in futuristic technologies to solve the problems of today”, explained Peter Derksen, Managing Director of Einvestment.
The Future Of Meat Is Plants
The global beef industry has multiple major problems on its hands that need to be addressed. One of the problems is the alarmingly high carbon footprint involved in the process of everyone’s favorite meats, be it steaks or hamburgers. By many accounts, the worldwide beef industry is one of the major contributors of Greenhouse Gas Emissions.
As more people become increasingly conscious of their individual carbon footprint, many or lowering their beef intake although they still crave the same amount of meat. This is where plant-based food makers come into play.
One company that comes to mind is U.S.-based Beyond Meat Inc, a maker of plant-based burgers, sausages, and other alternatives to traditional meat. The process of making a plant-based meat substitute requires 99% less water, 93% less land, and generates 90% fewer Greenhouse Gas Emissions.
Investors have caught on to this powerful investment trend of 2020 as some analysts predict U.S. sales of plant-based meat alternatives will increase from $4.6 billion in 2018 to $85 billion in 2030.
The Future Of Autos Is Electric
The past eight years have seen dramatic advancement in electric vehicle production and sales. Most notably, the number of battery-powered electric vehicles in use in 2012 was just 0.11 but by 2019 it reached 4.79 million.
The reason for this is clear and obvious: billions of dollars worth of R&D by multiple companies worldwide helped produce more attractive looking and efficient cars. By modern standards, a high-end Tesla Inc vehicle has an EPA-rated range of 402 miles (645 km) per charge and this will certainly increase over the years.
Savvy-investors paying attention to the sector are aware of what is coming next for the industry over the coming years. Most notably, the industry could be blessed with a battery capable of lasting a whopping 1 million miles before it needs to be replaced.
No wonder Tesla and many other rivals have seen their stocks rise in 2020. These companies can be counted on to deal a final death blow to the outdated and dirty oil industry over the coming years and decades.
The Future Of Telecommunication Is 5G
The current telecommunication standard used worldwide is “4G” — a reference to being in its fourth generation. The future of telecommunication, a “5G” network, is already live in a few cities worldwide.
5G networks will be exponentially faster than 4G to the point where it can help transform other industries, like autonomous driving and automated manufacturing.
Despite what many believe, 5G’s role in automation by one estimate will displace 75 million jobs by 2022 but over the same time period generate 133 million new jobs.
Investors that are up to date with the speed at which companies are developing components for the 5G infrastructure have already benefited in 2020. But there are many years, if not decades of gains to be made moving forward as the demand for components from the dozens of global suppliers will only increase.
Conclusion: Invest In The Future Today
Picking winning stocks requires a keen focus on future trends and strategizing on what companies are best positioned to benefit.
There are many “dinosaur” companies in the market today — relics of the old past. These are the stocks to avoid, even if they are trading at rock bottom prices.
Disclosure: None.