Which Industries Are More Interesting in 2019?

The new stock market year has just begun and many investors are naturally wondering which industries could be worth investing in. Tech stocks like Facebook , Netflix , Microsoft, and Amazon have had a tough time in recent months, but even in 2019, technology stocks could be big winners.

Which sectors are worth investing in?

Industries such as cloud computing, cyber security, mobile payment and health care promise great growth in the coming years as well.

Cloud Computing – continues strong growth expected in the next few years

The cloud computing market is still considered the hottest industry in the technology market. More and more companies are using the cloud of data to save on the costs of using applications and services.

If one believes a recent forecast by Goldman Sachs, the cloud computing market is expected to double again by the year 2021 to 116 billion US $. In the area of ​​cloud infrastructure services, the Amazon subsidiary Amazon Web Services (AWS) is still the measure of all things.

But also Microsoft could catch up strongly in the last years and is with number 2 in the market with Microsoft Azure cloud. In the area of ​​human resources management Workday dominates, while Salesforce dominates the field of customer management. The shares of Amazon, Microsoft, Workday and Salesforce should therefore still offer sufficient potential in the coming years.

Cyber ​​Security – indispensable even in the economic crisis

Computer security is indispensable even in times of economic crisis. More and more often, small and mid-sized companies are the target of cyber attacks. There are advantages for companies offering tailor-made and cost-efficient solutions.

For quite some time, Palo Alto Networks has been a measure of all things in the field of firewall solutions . With its platform-based approach, Palo Alto Networks provides automated security solutions that have become indispensable to many businesses (over 50,000 customers).

In addition to Palo Alto Networks, Proofpoint has made a name for itself in recent years, especially when it comes to the security of e-mail traffic. Over the last 5 years, Palo Alto Networks and Proofpoint stocks have been big winners, a trend that could continue in 2019.

Mobile payment continue to rise

After more and more users abandon the classic PC and instead do business with their smartphone, mobile payment traffic is also gaining in importance.

US $ 450 billion was transacted globally in 2015 through mobile payment services, and is expected to drop to US $ 1 trillion in 2019 (Source: Statista). The main beneficiaries of this development are mobile payment service providers such as PayPal , Square and Wirecard .

Constant topic of health care

As society grows older, health care for the population is becoming increasingly important. This trend will benefit large pharmaceutical companies such as Merck & Co as well as biotech companies such as Regeneron.

In particular, Merck & Co shares rose significantly last year after the cancer drug Keytruda became the absolute bestseller.

In Regeneron, the eye drug Eylea remains the growth engine. In 2018 alone, this drug generated over $ 4 billion in revenue for Regeneron in the US. Regeneron boss Len Schleifer sees Eylea even further expandable, also takes Dupixent, a drug for the treatment of skin diseases, more and more driving . In short, the shares of Merck & Co and the shares of Regeneron could also provide a positive surprise in 2019.

Conclusion: Growth stocks remain the first choice in 2019

Growth industries such as cloud computing, cybersecurity, mobile payment systems and health care will continue to be the first choice in 2019 when it comes to investing in equities.

Investors should not put everything on a card or an industry, but spread the capital to several growth sectors and stocks. Alternatively, there is also an Exchanged Traded Fund (ETF) , with which investors can specifically cover entire industries. One such ETF is, for example, the L & G Cyber ​​Security UCITS ETF, which replicates the ISE Cyber ​​Security UCITS Index.

Investors who invest in individual stocks should keep in mind that FDI in equities tends to be more volatile than, for example, investing in a broader ETF.