When the old economy all but collapsed in 2008, panic seized hold of the market. Real estate, traditionally a bastion of safe investing, had gone under and pulled most of the big investment houses with it. What no one could predict then was the emergence of the new economy.
Major changes in infrastructure, from energy to technology to even how we interact with our friends and family, has produced a whole new environment for savvy investors.
So what are the 5 best ways to invest your money in the new economy? Here’s a quick rundown.
1. Privacy Technology
The advent of the internet has created all sorts of social networking applications including Facebook, Twitter and MySpace. Combined with the raw search engine power of Google, every posting, picture and casual online comment you make is now indexable and searchable. This is great for the ego, but can have a negative impact when you’re trying to get hired for a job, or even if you’re just trying to keep your current one.
Companies that specialize either in keeping your information private, or burying those unflattering pictures or comments in search engine results such as the online service Reputation Defender, are going to become a hot commodity as more and more people seek to re-establish the lines between their personal and professional spheres. Because so much of our lies is lived in real-time online, investing in companies that sell their clients privacy will lead to a big financial payoff in the future.
2. Silver and Gold
William Jennings Bryant was widely lambasted for advocating the switch to a silver-based currency in the 1890′s, but increasingly, it appears that he was just ahead of his time. When President Richard Nixon took the United States off the gold standard in the 1970′s, tremendous inflation resulted. Currently, the global monetary system is largely based on trust and how much a currency is worth relative to other currencies. No matter how you cut it, the world monetary system is basically a giant house of cards.
Investing in precious metals will become increasingly popular because both gold and silver are tangible and have actual value. If the major currencies should experience a widespread devaluation based on some tricky financial maneuverings a la the Wall Street practices of 2008, having solid chunks of material worth is going to come in very handy, and instantly boost your material worth.
3. Green Technology
Wind and solar power, two of the major types of so-called “green” technology, will become increasingly lucrative investments in the new economy, as will electric vehicles. As the oil based economy gradually slows to a halt, shuttered not only because of dwindling resources but major environmental catastrophes such as the BP Oil Spill, the market for alternative forms of energy is going to heat up.
Both solar panels and wind turbines can be installed virtually anywhere there’s sun and significant breezes. Solar panel technology has been developing increasingly higher ratios of energy efficiency, making the total kilowatt hours that one panel can generate more impressive by the year. Currently, solar panels are on their third major generation.
The investor who manages to get in on the generation that puts out major amounts of energy will be rewarded handsomely. Wind energy, meanwhile, has long powered local communities that live in blustery areas, but with a large enough grid, wind turbines could power much more extensive regions of the globe.
Electric vehicles, which generally are powered by lithium batteries, show great potential as an investment. By combining energy efficient mechanics with the personal accessibility of a individual vehicle, electric vehicles are poised to become the next big thing in the automotive world.
4. Collaborative Software/Cloud Computing
One of the trademarks of the new economy is the understanding that purely profit driven models are not sustainable in the long term. Collaborative software, which uses open-source code and contributions from enthusiastic volunteers from around the globe, meets challenges head on by stating a goal and then meeting it.
Technologies developed from collaborative software include everything from civic minded software that helps people find recycling centers and parking spaces, to software developed by a global network of teachers that aims to find the best curriculum for public school children in all subjects. Collaborative software ventures require relatively little money but promise huge potential rewards. It’s like getting in on the ground floor of computers themselves.
Cloud computing is another hot investment area that has many similarities to collaborative software. With three principal branches (software as a service, platform as a service, and infrastructure as a service) cloud computing is poised to become the next big utility, sort of like electricity did in the early 20th century. Investors who are savvy enough to buy up stakes in a cloud computing venture will see a boost in their finances within a few short years.
5. Urban Redevelopment
You might be thinking: isn’t urban redevelopment another way of describing real estate? The answer: no. It may be easier to think of urban redevelopment as one giant construction boom, except with green materials and far more efficient civic planning.
The best way to invest in this industry is to attend your local community meetings and discover who is doing what to start preparing for the massive infrastructural shift. You may also invest in companies that handle the management and transportation of resources such as water, clothing and food.
Urban redevelopment is a blanket term that encompasses infrastructural changes, such as subway stations, biking paths, and other community oriented changes that emphasize making towns and cities both more accessible and integrated among local dwellers. No one is quite sure exactly how this will play out, but there is going to be a huge need for rewiring, restructuring, and rebuilding in the next few decades.
By investing in business-oriented firms that promise to tackle these issues in your local area, you will be part of a major trend that will generate thousands of jobs and some very satisfying financial pay-offs.
