3 Attractive Industries For Investment

There is also pretty good growth potential in the field. Demographic trends in established economies have been skewing older for some time, and an older populace naturally increases the demand for medical devices. Obesity epidemics in some developed nations has also led to increased demand for medical services. Also, the medical field remains a ripe space for technological advancement.

The most attractive ("green-dot") firms in this space will probably be found in the latter category, where products address deficiencies in the current standards of care, providing a big growth runway. Two examples are Intuitive Surgical (ISRG), whose robotic surgery machines have revolutionized prostate and hysterectomy procedures, and Align Technologies (ALGN), whose Invisalign product is a massive improvement over traditional metal orthodontic braces.

Branded Consumer Soft Goods

One of the oldest industries in America remains a decent place to find interesting stocks.

Consumers love brands. Brands are an implicit "contract" between company and consumer, assuring the consumer a standard of quality and reliability in exchange for a higher price. As long as the company does not break its end of the brand contract, consumers are likely to purchase the brand "automatically" over competing offerings.

This dynamic is most powerful in the "soft" goods category. Soft goods refer to items that are consumed in short order, necessitating regular re-purchases. Some examples would be things like soft drinks (Coke/Pepsi), coffee (Starbucks), diapers (Pampers), tissues (Kleenex), and so forth. The frequency of purchase for soft goods sets up a near-recurring revenue model, and the brand contract creates a strong, durable competitive advantage for the company.

The weakness of this space is growth potential. Many of the dominant brands here have been around for decades, and have largely fulfilled their growth potential, leaving little room for further expansion.

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