Jump to content

key sectors for 2019 - trade and investment ideas


Recommended Posts

So I recently received a certain publication from a competitor to IG (don't worry i'll behave) and it had a section in it that talks about some key global sectors which may be worth looking into for developing trends and developments in 2019. Thought it would be an interesting discussion given we're at the start of the year and many may be looking at some longer term sectors and strategy. My three sectors are....

Retail: obviously retail is changing, not only in the high street space which we all know has seen problems, but in the online space and more specifically china and their demand for high end fashion and retail. Key stats are

  • 7.6m households in china will be buying luxury goods in 2025
  • 33% of global spend on luxury in 2018 was by the Chinese ...
  • ...rising to 45% projected by 2025
  • 12% of worldwide retail sales were made online in 2018...
  • ...expected to rise to 17.5% by 2021

Cars: sales of cars and car companies in general has always been interesting for me. You used to see so many companies going under - going bust - being bought or acquired for £1. We all know those stories. However how with electric options and a growth in luxury its having a bit of a come back. Tesla is obviously very interesting to trade and has some good Vol going on there.

  • VW is the interesting one here. German listed, but home to Ferrari, audi, Bentley, Bugatti, MAN trucks and Porsche, but only valued at 73bn euro and has a PE of 7.5. You'd basically only need to wait 7 and a bit years to get your money back, along with a div of 2.3%, a cash balance of 22bn and an expected IPO of its truck business to pull in a further 7bn. Possibly valued low at the moment on the back of tesla love / investors not certain that they're ready for the future of the auto industry, however with a balance sheet like that ... its maybe a stock ISA long term option.

Tech: I'll keep this short, but I imagine many people be interested in this sector because its so god **** volatile!

  • Netflix expected growth is 58% in the next two years alone! However, we're also looking at a load of competition coming in the form of Disney, Warner and Apple who are in desperate need to diversifying their income stream. Netflix saw 7million new users in Q3 alone of 2018. Amazon prime is looking to have an estimates 170million users by 2022
  • Azures growth in Q3 of 2018 was 76% which is crazy. This is Microsoft.
  • Cloud computing is going to be big. 60% of enterprises are expected to move to the cloud by EOY 2019.
  • Apple lost nearly a quarter of its value in Oct and Nov 2018. Mad.
  • Tech IPO year? Lets have a look - Uber? Airbnb? possibly ...
  • This will be a risky year. I'm not convinced this will be the best play in 2019, but it is interesting. If you're looking at the space then my PERSONAL idea would be to look at the up and coming rather than the heavy weights.

So what are ya'll thoughts on this one? Whats 2019 saying?

  • Like 1
Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Posts

    • Sainsburys full year earnings and Unilever’s first quarter trading update both say the same thing, UK consumers are in for higher prices. The war in Ukraine, supply chain issues and the effects of ongoing Covid all to blame.      
    • US Dollar (DXY) Daily Price and Analysis US Q1 GDP may stall the greenback’s advance. A 20-year high nears for the US dollar. The multi-month US dollar rally continues with the greenback printing a fresh high today ahead of the first look at US Q1 GDP at 12.30 GMT. The US dollar basket (DXY) has been boosted by renewed weakness in the Euro and the Japanese Yen, as investors move from lower-yielding to higher-yielding currencies, while safe-haven flows continue to benefit the greenback. The US growth release later in the session is expected to show a sharp slowdown from the robust Q4 figure of 6.9%. The markets are currently pricing in growth of just 1% for the first three months of this year, with the slowdown mainly due to a reduction in inventory accrual over the quarter. This release is unlikely to move the greenback, unless there is a large miss or beat, as the Fed believe that 2022 US growth will be robust enough to let them tighten monetary policy sharply without damaging the economy. The latest US Core PCE data – the Fed’s preferred inflation reading – is released on Friday and this may have more effect on the US dollar than today’s GDP data. For all market moving economic data and events, see the DailyFX Calendar. The ongoing US dollar rally has been aided by weakness across a range of G7 currencies including the Euro, the Japanese Yen, and the British Pound. The Euro continues to battle with lowly growth expectations, exacerbated by energy concerns, the British Pound is mired by weak economic data, while the Japanese Yen is in freefall as the BoJ continues with its ultra-loose monetary policy.   The US dollar continues to press higher and looks set to break above 103.96, the March 2020 high. Above here the US dollar would be back at levels last seen nearly two decades ago. The March resistance will likely hold in the short-term, especially with month-end portfolio rebalancing at the end of the week, but US dollar strength is set to continue in the months ahead. USDOLLAR (DXY) WEEKLY PRICE CHART – APRIL 28, 2022 {{THE_FUNDAMENTALS_OF_BREAKOUT_TRADING}} What is your view on the US Dollar – bullish or bearish?   Apr 28, 2022 | DailyFX Nick Cawley, Strategist
    • While Tesla has nothing directly to do with Elon Musk buying Twitter - TSLA stock closed down 12% on news that Musk may have to sell stock and use other holdings to stand against the loan to finalise the purchase of the social media giant.        
×
×
  • Create New...