Ah, we did it! 2019 has passed and 2020 has started, and I believe that this year will be a very exciting one. Let’s do some stock predictions for the new year.
The stock market will continue to thrive
I know, some people just see bad things on the horizon, but I am pretty confident that 2020 will be another great year for investors. Mainly, because I believe that the US and Europe will finally find the courage to move on to new frontiers.
We are now starting to get into a generational transition. Plenty of Boomers will retire or be forced out of their VP and CEO seats. Some may pass away. And the new generation is going to do things differently. More disruption, more change, and more opportunities.
Some established companies may suffer, but those willing and eager to change will thrive. Among the most interesting players we may find:
- Waste & Garbage. All companies that deal with trash. The world is getting trashed and while the old CEOs across the globe seem to care very little about it (they care in their public relations statements but not really in their day-to-day operations), the new generation will take things more seriously. This is a huge business opportunity.
My personal stock investment for 2020 here will be Waste Management (WM).
- Energy. Not all forms of energy will be favored. I expect most oil and pipeline companies to do very poorly in 2020, except for those who have already started to transition to the new age of renewables, who embrace technological improvements and start to integrate energy storage systems, virtual power plants, and micro-grids in their business plans. There is tremendous potential for growth in a business that will be always needed.
My personal stock investments for 2020 here are E.On (EONGY) and Shell (RDS.B).
- Chemicals. Yep, we need to replace all those nasty oil products with something, and chemical companies will be key to help with this transition. Those who invest steadily in research & development will thrive. Those who don’t change will go down among strong headwinds from governments, regulators and public demand.
My personal stock investment for 2020 here is BASF (BFFAF).
- Medical / Health. The rich world is getting grey, and with rising average age, there is also a rise of health-related issues, thus higher demand for all kinds of medications and health-care. There are only a few major players and it’s also a very hard business to get a foot in for new competitors.
My personal stock investments for 2020 here are GlaxoSmithKline (GSK) and AbbVie (ABBV).
- Construction. I know, not the most exciting field BUT all that money earned in 2019 needs to be deployed somewhere. With growing urbanization and infrastructures across the globe facing utter needs for improvements, this area will thrive for years ahead.
My personal stock investment for 2020 here will be Caterpillar (CAT).
- Technology. 2019 was great for technology stocks, and it will continue being so in 2020. If someone would tell me that there is a growth-limit to technology companies, I would seriously question his or her mind. Whatever the last 20 years have taught us is that we are just on the brink of the edge of discovering what technology can do for us and how far we can push it.
My personal stock investments for 2020 here are Apple (AAPL) and The Trade Desk (TTD).
Note the differences in the bold letters between “are” and “will be” for each of the mentioned stocks. “Are” means that I already have them in my portfolio. “Will be” means that I have them on my watchlist and am planning to purchase them sometime in 2020.
I have also initiated some speculative positions in a few stocks that I think have very interesting potential, although I put very little money in it. On average only 350 Euros per company. These companies are:
- Virgin Galactic (Space Discovery and Travel)
- SailPoint Technologies (Digital Identity Management)
- EnWave Corporation (Dehydration Technology)
- Paragon KGaA (Automobile technology)
Also, I am looking to initiate small positions in:
- Zoom (Video Communications)
- KeySight Technologies (Electronics test and measurement equipment)
- SmartSheet (Cloud-based data collaboration)
- iRobot (Robotics)
- Omron (Robotics)
These are or will be all speculative investments with very small stakes. I consider them to have an interesting potential versus risk ratio. Most of them don’t pay dividends and I don’t expect them to be my key to passive income. But I do think that they may greatly contribute to reaching my FIRE target in the long-run by an exponential rise in value.
Let’s see how much of all this will become true!