Tip #5 - How to choose industries with good prospects

Every week we post a tip that we hope will help you become a successful share market investor.

Tip #5 — How to choose industries with good prospects

Some simple high-level thinking will quickly highlight industries with good potential. Here’s a few leading questions to get you thinking. There are plenty of other prospects as well.

• Will the world suddenly stop wanting the output of the Australian mining industry, or NZ dairy products?
• What are the implications of our aging population for retirement villages, rest homes, optometrists, dentists and providers of other medical services?
• Will tourists suddenly stop coming to Australia and NZ in ever increasing numbers?
• Does our banking industry have a good track record? (Hint: think APRA and the 4 pillars policy)

This information is not a recommendation nor a statement of opinion. You should consult an independent financial adviser before making any decisions with respect to your shares in relation to the information that is presented in this article.

FURTHER READING

• Blog -- Tip #4 - How to pick good shares
• Blog -- Does your investment portfolio match your appetite for risk?
• Blog -- Asset allocation reporting in Sharesight