One of the smartest decisions that prospective investors can make is to look into niche markets and the offers they present. Niche markets are subsets of larger markets or sectors that can be targeted narrowly. An example of investing in a niche market would be to build a portfolio of bonds issued by the Port of Los Angeles; this is a subset of the larger maritime shipping market.
The advantage of niche markets is that they may exhibit quick and strong growth potential down the line. With this in mind, here are some niche markets that may prove interesting to the right investors:
Baby Goods and Services
Highly developed nations such as Germany, Japan and the United States are experiencing rapidly aging populations; this demographic trend has resulted in doting parents who are spending their disposable incomes more than ever on products and services for their newborn babies. In 2012, this market was valued at $275 million in annual sales; for 2018, that figure is expected to climb to more than $66 billion.
Investing in Life Insurance Policies
Not many people think of life insurance policies as investment vehicles; nonetheless, quite a few Wall Street firms are known to fill their portfolios with shares of companies that provide life insurance coverage. In and of itself, a whole life insurance policy should be considered an investment because it features actual cash value and allows individuals to build up savings that can be used for various purposes. There is also an increasing number of policy holders looking for ways how to sell their life insurance for cash.
Cryptocurrency Exchange — Traded Funds
Major digital currencies such as Bitcoin, Ethereum, Litecoin, and Ripple are ready to enter Wall Street, and it looks like they will do so by means of ETFs. As of September 2017, three cryptocurrency ETF application packages are being reviewed by the Securities and Exchange Commission, and investors are anxiously awaiting news of approval.
Renewable Energy Production in the Mediterranean
With countries such as Germany, Sweden and the Netherlands leading the European region in terms of renewable energy production, nations with Mediterranean coastal areas are starting to invest heavily in this sector. Ongoing projects to build solar and wind power farms in France, Italy and Spain are advancing quickly and looking for investors. There is a nice diversity of instruments to choose from in this niche markets: bonds, renewable energy credits and shares of companies involved in developing the various projects.
These mentioned niche markets are just the tip of the iceberg. Discovering more markets is a simple matter of online research and signing up for news alerts provided by publications such as the Wall Street Journal.