Wealth in the Future

Some readers may be familiar with my books High Yield Investments and High Yield Investments 2 which detail many of the world's best performing investments, funds and potential 'boomers", but I get asked quite often will these be the best performing investments in the future? It's a fair question that really requires a crystal ball to answer. I wish I knew. I suppose based on the information available and the quality of management etc, the chances are most of them will be the some of the best performers in the future. Some will perform better than others due to better management, investing in the right industries, timing and sheer luck. However, I suppose the main reason some will out perform will be "the right place at the right time" situation.

Don't get me wrong now, I'm not saying the investments in my books aren't good for the future, in fact on the contrary, most of the investments have performed beautifully and some fantastically well and will continue to do so for many years. In fact, I wish I'd listen to my own advice more often and invest in more of them myself, I'd be a lot richer if I had. But what I'm getting to is, what will be the best investments in one, five or ten years from now? What industries, companies or countries will boom? What will the Australian economy do in the future? What about the world economy, will the boom continue? Will the high tech boom continue on Wall Street? Will it take off here and do we have any worthwhile high tech companies? If we do, who are they and what do they do? Will the internet really take over our lives?  Who will profit from the internet? How can you profit from the internet? What will the world look like in 10 years? You could ask 100 experts and get 100 different opinions.

Well, that's what I have been doing, asking brokers, analysts, experts, successful investors, reading books, magazines and tracking down relevant information on the net. I was in New York late last year doing research on these subjects. Unfortunately, it's not research I can do here as I can't get the information regardless of how much I try. Well, I came back with a wealth of information (and very heavy bags) and I believe based on the consensus of opinion of many respected journalists, analysts, brokers, writers, economists and traders, I will be able to shed some light on where wealth will be made in the future. It's all contained in my recently revised book, Future Wealth. I uncover over 50 companies, that based on the consensus of experts will enable you to become wealthy. 

Since I started putting all this information together in Future Wealth I have also come up with some conclusions that most well respected "gurus" also seem to believe and they are:

Globalisation will change the face of certain industries, particularly those that employ blue collar workers. The third world will take away many of the manufacturing jobs still left, nothing is more certain.

The internet will evolve into something bigger than we can imagine right now. It will become part of everyday life and remove many of the reasons we leave the house.

The workplace will change. There will be more "virtual" offices. Fewer and fewer people will travel to work.

Banking will change with most banks as we know it disappearing forever. If you need to see someone you will travel to "Customer Service Centre" . Otherwise banking and investment will be done "online" . Banks are already planning for this within 5 years.  Banks will be more profitable than ever! Most of the improvement in bottom lines will come from closing branches, retrenching staff and increasing fees on everything. You see, you will be a captive audience, there will be no alternatives.

A cashless society will happen within 15 years and the banks will love it. No more pesky ATMs to run. There will be a system of remote and online "EFTPOS like" machines. They will even be pocket sized, everyone will have them, just like mobile phones, some companies are already working on systems that will process funds transfers through a mobile phone and hand held PCs. If you owe a friend some money, you will transfer it electronically. Banks will pick a fee every time a transaction occurs.

You will shop more and more online, even for clothes. Once you have a fitting, your size will be kept on computer with the "store" and you will try clothes on by seeing them on you through your screen at home.

Every kitchen will have a link to supermarkets and you will scan products yourself as you need them replaced or you will select them through active plasma screens. The goods will be delivered later that day to your home. Retailers are already perfecting this system in the US.

There will be many more changes coming in the next ten years and guess what? All the technology is already there, they are simply waiting for the public to get used to the idea. Do you know where a lot of the companies will be introducing the "beta" versions of these systems to gauge public acceptance? Australia. Do you know why? Two reasons, the first is we are very accepting of new technology and the second is that if it is a public relations disaster, the major US firms developing this stuff won't hurt their major core markets in North America and Europe.

So, who will benefit from these changes and the many others coming our way? Well for a start think of companies involved in Electronics, Banking and Financial services, Computers, Healthcare and Pharmaceuticals, Broadband Telecommunications, Internet support, Delivery and Transport.  Also, think about companies with large workforces in central offices as they will be paring down their workforces as they become "electronic" . More and more people will become consultants and run their own companies providing their former "big" employers with "out sourced" services. In addition, as we won't be going to "work" as such, there will be a greater emphasis on quality "entertainment and socialising". Expect going out at night and "after work" more popular as people crave human contact and to get out of the "house / workplace"

The losers? There will be many. For a start, old fashioned "smoke stack" businesses. They will eventually all move to the third or second world where labour is cheaper. Fierce competition will keep prices down and will do the same to profit margins. Companies that don't embrace the new technologies will wither on the vine and disappear. "High employment level" companies will struggle to compete or survive as the cost of an employee rises.  Some people will be looking forward to this new world, I'm not so sure whether it appeals to me though. However, if one can profit by it, one should - Don't you agree?

For more information on this subject we recommend the following Trident Press titles:
Investing to Win
Future Wealth
The Australian Share Market Guide