Where Will Future Economic Growth Come From?
Source: http://feedproxy.google.com/~r/ContrarianProfits/~3/vx_WhFfXdVI/20525Posted on Friday, September 11th, 2009 | In Market Commentary
It’s a difficult question to ponder as the state of the world economy is so fragile. Right now, GDP growth stems exclusively from the government’s stimulus package. But once Obama and his cronies are finished fixing the economy, what will the fuel the next leg of the recovery?
In the near term, we think the prospects for job growth look incredibly bleak. Banks aren’t lending. Companies aren’t hiring or investing heavily in R&D, and corporate profits are up only because of cost cutting measures, like layoffs, rather than bottom line revenue growth.
In the long term, however, certain industries look primed to blossom like plastics did in the 70s and semiconductors, personal PCs, and telecom did in the 80s and 90s. Barry Ritholtz at The Big Picture points out ten niche industries he thinks will fill in the gaps and push the world economy forward. Here are his top ten (listed in order of biggest near term potential.)
- 1. Nano Technology
2. Green Energy
3. Battery technology
4. Genomics/Stem Cell Research
5. Web 2.0/3.0
6. Robotics
7. Life extension Technologies
8. Bio-Agriculture
9. Atmospheric Engineering
10. Terra forming/Extra Planetary Colonization
Another one we’d add to his list is human computer interaction technology (HCIT). HCIT is a new breakthrough technology that is set to change the way we interact with computers. It works by using tiny chips installed under the surface of electronic devices. When activated, the chips deliver a “touch” response that you can actually feel.
So let’s say you had an HCIT-enabled computer mouse – and you moved the cursor over the picture of a beach. Even though you’re actually touching a flat mouse button, this technology makes it feel like you’re touching sand… or even rolling waves. The chips send the message to your fingers like a speaker sends a message to your ears.
It’s pretty incredible technology. Microsoft, BMW, Sony and Samsung have already jumped on board. So how can you make money in this emerging multibillion dollar market. Karim Rahemtulla of Mt. Vernon Research outlines exactly how to profit from the coming boom here.
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