Paddy Moore is editor of Canadian Investor Magazine. His talked was called "Identify the Trends: Sharpen your Strategy". To find investment trends, look for talk about companies and look for news and new trends.
The first trend in the west is the aging of the west. We are getting older and this will be the dominate theme for the next decade to 18 years. There will be slower GDP growth, less inventions and high health care costs. In 1950 there were 16 workers to each retiree. In 2050 there will be 2 workers for each retiree.
Retiree can draw on savings to live on. There are richer and healthier and more mobile seniors than ever before. There are lots of seniors still working. We can invest in travel companies, Real Estate companies, Financials, Health care companies, drug makers and retirement homes. Boomers will need more medical care, financial and insurance products, and consumer products and will want to travel.
His first investment theme is because of the aging West we can invest in such companies as Centric Health (TSX-CHH), Novadaq Technologies (TSX-NDQ), Extendicare Inc. (TSX-EXE), and Savaria Corp. (TSX-SIS). These should all profit from ageing boomers and all these companies are growing.
His next theme is growth in a virtual world. Under Car2Go, you do not need to buy a car. The internet is unlocking stored value. Under Airbnb, Parking Panda, Snapgoods, and Dogvacay you can borrow, rent and share. Under the share economy you are both producer and consumer. This is peer to peer sharing. There is an app for that.
There is also a consumer ownership shift. You can rise money via Indiegogo and Kickstarter. There are looser rules for such things as Kickstarter.
E-commerce is growing. There is a shift to on-line. There are sites of Coastal Contacts and Shop.ca. These are Canadian retailers.
The real cloud is cloud computer. Businesses can reduce cost because they do not need capital costs. There is an increase in risks (so security company's profit). There is the Blackiron data portal, Vmware and Esri Canada for cloud computing in Canada.
Tech is a hot investor area in Canada with 107 tech companies on the TSX and TSX Venture. Stocks like Redknee Solutions (TSX-RKN), NexJ Systems (TSX-NXJ), Sandvine Corp. (TSX-SVC), Bri-Chem Corp. (TSX-BRY), Axia NetMedia (TSX-AXX), Destiny Media Tech Inc. (TSXV-DSY) and QHR Corp. (TSXV-QHR).
Biotech is super-hot. There was a small drop in funds raised last year and this is the first time for that to happen. Companies like Tekmira Pharmaceuticals (TSX-TKM), Cipher Pharmaceuticals (TSX-DND), QLT Inc. (TSX-QLT), Neptune Tech & Bioresources (TSX-NTB) and Transition Therapeutics Inc. (TSX-TTH). These all have recent gains and they are aimed at the boomer market.
We also have sustainability (50 shares of green). We should be doing ESG Analysis on our stocks. Companies need to manage downside risk. ESG stands for Environment, Social and Governance. ESG factors give companies long term performance advantage. ESG companies include Bank of Montreal (TSX-BMO), Best Buy (NYSE-BBY), Cascades Inc. (TSX-CAS) (they have a biogas project that makes things sustainable), Iamgold Corp. (TSX-IMB) (environmental mining), Starbucks Corp. (NASDAQ-SBUX) and Tesla Motors (NASDAQ-TSLA). These companies act financially and environmentally responsibly. People want green investments.
I have found a site that explains in full what ESG analysis is. See the ESG Managers Portfolio site.
See his web site of Canadian Investor Magazine.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.