Certain markets have continued to build upon some strong recent performances. But some sectors have done better than others when it comes to investing returns.
Here’s a breakdown of the best performing sectors according to the latest data from Saxo Markets.
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Which sectors had the best investing returns?
We kicked off the summer at the beginning of June, and some sectors have been basking in the sunshine.
Research from Saxo Markets shows that the following five themes were hot choices for investors last month:
1. NextGen Medicine (+17.6%)
Medicine is undeniably a big money maker. Recent technological improvements in the field are making exciting new treatments possible. This, coupled with reduced inflation expectations, has helped to bolster growth in the area.
2. Bubble Stocks (+10.3%)
These tend to be overvalued stocks, or at least stocks with very high valuations. Share prices in this area have been rocketing over the past year but have hit a fairly rocky patch over the last few months.
However, the recent returns will help growth investors and followers of Cathie Wood’s ARK Invest breathe a sigh of relief.
3. Green Transformation (+6.4%)
This is a sector that had waned slightly after a booming year in 2020. However, it looks like green transformation shares are back on the rise.
Companies in this sector have been posting some positive results, which is once again making it look like an attractive field for investing.
4. Cybersecurity (+5.8%)
We’ve all witnessed the rise in the price of Darktrace shares since the company went public. But this whole sector seems to be one that’s on the up. Cybersecurity was even high on Biden’s agenda during his recent sit down with Russia’s Putin.
It seems cybercrime is becoming increasingly prevalent, so it’s no surprise that companies want to protect themselves. This is good news for firms in the security business.
5. Mega Caps (+5.1%)
These are the big players in the investing world. To fit the bill, companies in this sector have a high market share, strong earnings and balance sheets, and a global reach.
This should allow them the ability to offset inflationary pressures and provide investors with consistently decent returns. It looks like they are doing quite well judging by last month’s results.
How do I start investing with little money?
Even if you only have a small investing budget, with a cheap share dealing account you can build yourself a great portfolio.
Using a stocks and shares ISA can also help you keep the costs down and retain more of your money as your portfolio grows.
Just remember that you may get out less than what you put into investments, and past performance doesn’t dictate future results. You may find better value outside the areas that have been posting big gains recently.
Please note that tax treatment depends on the specific circumstances of the individual and may be subject to change in the future.