Food industry

Regardless of how strong the country’s economy or a stable specific industry is, no stock is absolutely safe for the investor. The situation with individual companies can change rapidly under the influence of lawsuits, internal fraud, changes in management, disruptions in production, the introduction of new technologies, the success of competitors and other factors.

Therefore, it is reasonable not to look for a “reinforced concrete” option, but to distribute investment capital in several segments. Beginners are better off looking at mutual funds or ETFs. They work with the entire industry as well as with companies from a wide selection.

This article describes several areas of industry that are stable at all times: in crisis and in favorable for the economy.

What is a safe investment??

Government bonds are considered almost 100% safe, as their yield is predictable and guaranteed. But this does not mean that the real value of the money invested is really growing. Nevertheless, predictability and stability are the main criteria for investment reliability..
A more or less fair assessment is given by the scenario for the entire sector of the economy, which is based on assumptions about the demand for products and services. For example, what is the likelihood that in 20 years people will still use social networking sites? And how confidently can we say that in the same 20 years people will need food?

Thus, safe investments are associated with those services and products that always remain relevant..

1. Food industry

Enterprises that produce food products, such as grain, cereals, meat, drinks, will certainly be relevant. And with them will be in demand related areas – the manufacture of packaging equipment and materials for food.

In most countries, there are regulations, measures and laws that support the efficient production, purchase and supply of food. All this makes the food industry one of the safest economic niches for investment..

2. “Fast” consumer goods

Quickly used consumer goods include such things as:

• soap, toiletries, hygiene items;
• detergents, household chemicals;
• cosmetical tools;
• oral hygiene products;
• batteries;
• pulp and paper products.

For a wide range of people, such products are an indispensable part of the consumer basket. Therefore, companies from industries related to their production are stable..

The market profit for these products is small, because there is strong competition in the market. But the volume of sales is so high that it compensates for this drawback. In addition, to attract investors, manufacturers of “fast” goods give dividend income.

3. Textiles

Fashion trends may come and go, but people will still need clothes. If you do not take into account the fluctuations associated with fashion trends, the textile sector of the economy is a safe place to invest. This includes the production or processing of cotton, linen, silk and other materials from which fabrics are made.

4. Legal control and consulting

No matter how many presidents or prime ministers are elected, no matter how many new laws are adopted, the world will continue to be full of conflicts, difficulties and legal problems. This means that the compliance-oriented services sector is one of the safest investment areas..

If there is no complete collapse of the legal system and the rollback of society to a primitive state, legally companies will continue to flourish for decades. The probability of such changes is practically zero.

5. Energy

History is full of examples when countries waged (and are waging) wars for energy security. People need electricity to use household appliances, and fuel to drive cars, trains, and planes. Energy can be obtained from a wide variety of sources: from fossil coal, oil or natural gas to atomic decay or sunlight..

Global demand for energy sources is not just maintained, but is growing steadily. Therefore, companies working with traditional and alternative energy sources are a reliable choice for investment..

6. Water industry

This sector includes the extraction, transportation, processing and packaging of water from various sources. Demand for water is high and important for people. Some futuristic experts even predict future wars for it.

It is expected that the requirements for drinking water and industrial use of water will increase, and enterprises engaged in its treatment, processing and transportation will profit from this.

Water is even more important for humanity than food, because, at a minimum, it is necessary for growing food. This makes water extraction and processing a safe sector..

7. Health

Since the beginning of the 20th century, medicine has been giving the world discoveries that not only extend life, but also help to get more pleasure from it. We began to live longer and better, but still not completely protected from outbreaks of epidemics and incurable diseases. Swine flu, Ebola, AIDS, oncology continue to remind humanity of the importance of healthcare. In addition, the demand for industrial products remains due to seasonal relapses of colds and flu..

Despite preventive measures, vaccinations and the development of modern drugs, a person can’t avoid the emergence of new diseases and the need to use medicines. Healthcare will therefore remain a safe area for investment..

Conclusion

After the global financial crisis of 2007-2008 and the European credit crisis, investors became more accurate. They are more risk sensitive and are looking for a safe investment. In the long run, the listed industries are expected to provide good returns. Instead of betting on individual enterprises, investors should diversify their investments. To do this, distribute shares to several companies on your own or apply to mutual and index investment funds.