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Tuesday, June 18, 2013

Top 5 hot investing niches in 2013

ROI Graphic
2013 is bullish for equity
In spite of the fact that at the beginning of the year a slight growth in the US economy was announced, GDP growth remains tepid despite a return to economic stability.

With the after effects of the federal sequester predicted to reduce GDP growth by as much as 1.5% per the IMF's Christine Lagarde, and concern over corporate profit taking prior to FRB tapering, investors may wonder where to put their money.

Following is a list with the hot niches worth checking out for the remainder of this year:

1. Business coaching

With unemployment wreaking havoc in both the US and Europe, a new promising industry has gained ground. Business coaching franchises have all the potential to flourish in an age when more and more companies erroneously believe that they are able to get the same performance with lesser resources. For example, if business coaching assists business owners and managers see operational and financial blindspots that cost more than consulting fees, then coaching is a reasonable proposition.

2. Real estate

Even though the massive foreclosure wave is far from over and all signs suggest it's going to be to overhanging for a couple of more years, observers have noticed a slight improvement in property values. Considering that economists estimate that interest rates will stay quite low until at least 2015 and that they benefit borrowers, real estate is an interesting niche worth following this year.

3. Hybrid vehicles

The constant oil price spikes have somehow forced the hand of automakers to dedicate more time and effort into their hybrid line production. As the situation gets tenser with Iran and reconciliation does not seem like an option any time soon, rest assured the next spike is not far away. Given these circumstances, automotive manufacturers have to ramp up production and figure out a viable method of making hybrids more affordable at entry level for the average consumer. On a side note, several auto companies, including Fisker Automotive have already earned substantial cash from venture capital.

4. Asian companies

During the time that the European Union and the US were implementing an austerity platform, China and other Asian countries were not so seriously affected and even had the opportunity to make some savings. In addition to becoming important players in both Europe and the US, Asians have also learned how to be consumers; a fact that economists anticipate will benefit their economies greatly. In fact, some suggest that even though they are in the early stages of the expansionary monetary policy, the consumerism might save their economies from recession.

5. Gold

Granted, for the time being the gold prices have stabilized in both Europe and the US and thanks to banker manipulations, are quietly waiting for the economies to catch up. However, there are some voices suggesting that a collapse in gold and other precious metals is bound to happen in the next few years. Even though gold doesn't generate wealth, it’s still considered a good investment.

The main advantage of these franchises is the low starting costs, which are usually under $100,000 in total. Furthermore, executive business coaching is a highly flexible industry in the sense that you don't really need a big staff and you will have complete control over your schedule.

About the author: Expanding on point five, business coaching and training evaluation are areas of consulting that don’t seem to be suffering too badly. Emma loves studying stocks and shares and as a result, is keeping a keen eye on the above five industries for the remainder of this year.