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.