How do you know what industries to invest in? Financial advisor Karl Johnson said we have a unique opportunity.
"We can follow baby boomers," he said. "In the early '50s, industries catered to babies. Then in the '60s, McDonalds became popular and industries grew that served the needs of families with children. The construction industry at the time was a great place to be.
"Then in the 1970s, retailers like Wal-Mart came on the scene. Retailers began offering decent quality and low cost products for shoppers who couldn't afford or didn't want to pay higher prices.
(my note: the late '60s and the early '70s also gave rise to the mall concept. Being from east of the Pittsburgh area, I remember the innovative Monroeville mall and Greengate Mall. My mom would pack me into the car and drive from our home in Ligonier for about 20 miles or so to Greengate on Route 30 between Greensburg and Irwin.)
"In 2007, where are Baby Boomers today? They're preparing for retirement so the financial industry is a good industry to invest in. Health care is another good industry since there are so many people concerned about their health needs. Energy is another good industry since everyone needs it. There's a higher demand for a dwindling resource.
"Speaking of energy, I don't invest in alternative energy. I believe the big energy giants will dominate the landscape and they won't just buy out the smaller, innovative companies. They'll just bull doze over them.
"Lastly, I also think it's more important to diversify and have international investments."
See my two previous posts from Karl on how not to fear bad economic news. Email me at deesm111@yahoo.com if you'd like to speak with him.
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