► Promising areas: Medical equipment, healthcare facilities, advanced drug development, telehealth and biosecurity (aimed at mitigating biological threats from pathogens).
Automation. “The localization of supply chains, chronic labor shortages and rising labor costs have all accelerated the pace of automation in manufacturing and services,” Hyzy says. As one example, cashierless stores are already on the rise. And 3D printing is revolutionizing manufacturing.
► Promising areas: Electrical equipment and instruments, application software, artificial intelligence and communication services.
Climate change and the transition to a green future. The Ukraine conflict has delayed the global drive towards renewable energy as countries scramble for short-term energy supplies. “But this only underscores the planet’s large reliance on fossil fuels,” Hyzy says. “Policy makers are redoubling their efforts to promote and secure renewable energy.” For example, the Inflation Reduction Act of 2022 earmarks $369 billion for clean energy, aimed at helping the U.S. reduce greenhouse gasses by 40% below 2005 levels by 2030.2
► Promising areas: Solar and wind, electric vehicles and related infrastructure, including industrials, materials, utilities, transportation and energy.
Think longer term
Planning for the future doesn’t mean ignoring current market conditions, Hyzy notes. Your advisor may suggest incremental adjustments to help position your portfolio for volatility that’s likely to continue for the next several months. But don’t let daily events dictate your broader strategy or cause you to make sudden decisions, he advises.
Instead, think longer term and consider the opportunities emerging as the economy resets, Hyzy says. “Despite the tall list of short-term unknowns, we believe the future is bullish. Now’s a good time to develop a plan and invest for the future.”
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