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10 Markets to Invest in Before 2020

There have been dramatic changes in the economy over the past decade. Some of the rising industries we will cover today are supplanting industries that have thrived for over a century. In other cases, new policies are thrusting industries back into the legal marketplace. Investing in an industry with high-growth potential is exciting, but also risky. What steps should you take to make sure your investment is a good one?

Whether or not an industry has strong growth prospects typically stands as the highest priority. However, other qualities like solid leadership, access to industry, barriers to entry, and what kind of leverage a growing company has are essential to evaluating a good investment. These are traits we will factor in as we assess 10 industries and equities to match today.

Gartner, the US-based global research and advisory giant, survey 3,000 CIOs operating in 89 countries in January 2019. The survey found that artificial intelligence (AI) implementations grew 37% during 2018 and have experienced 270% growth over the past four years. Gartner also revealed that 37% of organizations had implemented AI in some form.

Analysts at Toronto-based IDC Corp forecast that spending for cognitive and AI systems will reach $77.6 billion by 2022. That represents a five-year compound annual growth rate (CAGR) of 37.3%. Investors should be aiming for AI exposure as we move into the next decade.

Kinaxis (TSX:KXS) is an Ottawa-based company that provides software solutions for sales and operations planning. Its stock was up over 500% since its initial public offering (IPO) as of close on March 4. The drive for AI software will allow managers to automate large parts of their enterprise going forward, which will increase productivity and dramatically boost profit margins.

Kinaxis’ RapidResponse software program boasts capabilities like consequence evaluation and alerting, high-speed analytics, and scenario simulation. The company posted 16% revenue growth in 2018 compared to the prior year. It is projecting over 20% revenue growth in FY2019.

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Yes, we may as well get it out of the way. The promise to legalize recreational cannabis was a key factor in winning the Liberals the 2015 election in Canada. When the party made it clear it would make good on its promise, it changed the investment landscape in Canada.

Stocks like Canopy Growth (TSX:WEED)(NYSE:CGC) and Aurora Cannabis (TSX:ACB) have scrambled to ramp up production and grow a foothold in nations around the world. Valuations for top producers have soared into the billions even as revenues remain modest in comparison. The media attention afforded to the cannabis industry may inflate its scale and impact, but that does not mean it is not a good investment.

A recent report from Grand View Research projected that the global legal cannabis market would reach $146.4 billion by 2025. Spanning back to 2017, this represents a CAGR of 34.6%. Canadian companies like Canopy Growth are benefitting from a big head start. The ability of Canadian cannabis companies to reward their shareholders will depend on international expansion. Investors should target cannabis producers that are working to grow their global footprint.

The 5G network is the next generation standard for wireless communications. This is scheduled to follow the current 4G network. It boasts networks with vastly increased capacity, reduced latency, and faster speeds. The first 5G networks are set to launch in April 2019, with the second phase slated for early 2020.

According to a recent report by MarketsandMarkets, the global Small Cell 5G Network Market size is expected to grow from $528 million in 2019 to $3.50 billion by 2025. This represents a CAGR of 37.1%.

Telus (TSX:T)(NYSE:TU) made a splash in 2017 in its partnership with Chinese telecommunications giant Huawei. Telus and Huawei achieved a breakthrough with the successful completion of a 5G wireless connection using the global 3GPP technology standards platform. Unfortunately for Telus, geopolitical tensions have ignited a fierce debate in Canada that could see Huawei banned from the development of its 5G network.

Rogers (TSX:RCI.B)(NYSE:RCI), on the other hand, is working with the Finnish-based telecom Nokia. Nokia leadership has said that development is on track and auctions are underway in March. We can expect to development into high band by 2021.

You might be missing out on one of the biggest opportunities in Canadian investing history…

Marijuana was legalized across Canada on October 17th, and a little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

Besides making key partnerships with Facebook and Amazon, they’ve just made a game-changing deal with the Ontario government.

One grassroots Canadian company has already begun introducing this technology to the market – which is why legendary Canadian investor Iain Butler thinks they have a leg up on Amazon in this once-in-a-generation tech race.

This is the company we think you should strongly consider having in your portfolio if you want to position yourself wisely for the coming marijuana boom.

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A study from Oregon-based Allied Market Research concluded that the global market for autonomous vehicles will be worth $54.23 billion in 2019 and will climb to $556.67 billion by 2026. This represents a CAGR of 39.4%. That is not to say that the industry does not face major hurdles. These include a wary public and the threat of cyber breaches. A top Canadian company has gained a foothold in this industry and is working to mitigate at least one of those problems.

Blackberry (TSX:BB)(NYSE:BB) has made an impressive transition from a hardware-focused company to a software-focused one under the leadership of CEO John Chen. In early 2018 Blackberry partnered with Chinese multinational Baidu to jointly develop self-driving vehicle technology. In the third quarter of fiscal 2019 Blackberry reported double-digit revenue growth for Blackberry Technology Solutions, which was powered by its automotive vertical division. Last year Blackberry also launched a cyber security software designed to identify vulnerabilities in programs used in self-driving cars.

In February it was revealed that Blackberry would receive $40 million from the Canadian government to help develop technologies to make cars safer. Blackberry will fork over $300 million of its own money into the initiative.

Biotherapeutics is the fastest-growing sector in the pharmaceutical industry. Total revenues reached over $230 billion in 2017. According to Allied Market Research the global cancer therapeutics market was valued at $81 billion in 2016. This is expected to grow to $178 billion by 2023.

Technavio, a London-based research firm, recently projected that the global breast cancer therapeutics market will achieve CAGR of 8% between 2019 and 2023. Zymeworks (TSX:ZYME)(NYSE:ZYME) is a Vancouver-based biopharmaceutical company with a promising product candidate in the form of ZW25. Shares of Zymeworks were up nearly 50% year-over-year as of close on March 5.

Zymeworks has reported solid progress on ZW25. In January Eli Lilly, one of Zymeworks’ pharma partners, filed an investigational new drug (IND) submission for one of its Zymeworks-partnered immuno-oncology antibodies. The company is well-positioned for massive growth if it manages to push its more promising products into the market.

Amazon CEO Shocks Bay Street Investors By Predicting Company “Will Go Bankrupt”

Amazon CEO Jeff Bezos recently warned investors that “Amazon will be disrupted one day” and eventually “will go bankrupt.”

What might be even more alarming is that Bezos has been dumping roughly $1 billion worth of Amazon stock every year…

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According to a February 2018 report from Grand View Research, the global dietary supplements market is expected to reach $278 billion by 2024. This represents a CAGR of 9.6% from 2016 to 2024. A 2018 survey of 196 industry professionals by organizers of Vitafoods Europe indicating that baby boomers will drive the nutraceuticals industry for at least the next decade. This is something Jamieson Wellness (TSX:JWEL) is betting on.

Jamieson Wellness is a Toronto-based company involved in the manufacturing, distribution, and marketing of supplements as well as sports and nutrition products. The stock has slowed down year-over-year and was down 7% in 2019 as of close on March 5. However, its long-term prospects are promising.

The company is projecting 25% to 35% international growth in its Jamieson Brands segment in 2019. It also forecast 3% to 5% growth domestically. Jamieson is a safe bet to post steady growth well into the next decade and comes at a nice value priced below $20 as of this writing.

The rise of automation, and the disruptive impacts it will have on the job market, is covered often in the mainstream media. According to a late 2018 report by Zion Market Research, the global industrial automation market will reach $321 billion by 2024. Valued at $207 billion in 2017, this represents a CAGR of 6.5% between 2018 and 2024.

ATS Automation Tooling Systems (TSX:ATA) is an Ontario-based company that provides automation systems for the manufacturing sector. The stock had climbed 79% over the past three years as of close on March 5. For the first three quarters of 2018 ATS Automation had achieved revenue of $816.5 million compared to $745.2 million in the prior year. Period end backlog hit $689 million, which was 9% higher than at January 1, 2017.

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Clean energy investment hit $332 billion in 2018, which was down 8% from 2017. However, it was the fifth year in a row in which clean energy investment exceeded $300 billion. A report from Market Research Future recently projected that the renewable energy market will achieve CAGR of 8.9% between 2019 and 2023.

Innergex Renewable Energy (TSX:INE) is a Quebec-based company that will benefit from these trends. Shares were up 7.1% year-over-year as of close on March 5. For the first three quarters of 2018 Innergex reported revenues of $408 million compared to $292 million in the same period in 2017. It also saw a significant increase in power generated.

Brookfield Renewable Energy (TSX:BEP.UN)(NYSE:BEP) is another option for investors looking for exposure to the renewable energy sector. The stock was up 13.8% in 2019 as of close on March 5. In 2018 Brookfield Renewable reported that funds from operations (FFO) increased to $676 million compared to $581 million in the prior year. This was on the back of a big boost in total generation.

Both stocks boast dividend yields of at least 4.7%.

The growth of online shopping and e-commerce giants like has resulted in a major disruption for traditional retailers. This past year saw the collapse of companies like Toys “R” Us and Sears Canada.

Retail sales in Canada declined 0.1% to $50.4 billion in December 2018 with lower sales at gas stations weighing on results. On an unadjusted basis, retail e-commerce sales were $2 billion in December 2018, which accounted for 3.7% of total retail trade. For the full-year retail e-commerce climbed 14.7% year-over-year to $18 billion in 2018.

Shopify (TSX:SHOP)(NYSE:SHOP) is a cloud-based commerce platform that offers its services primarily to medium and small businesses. The stock has soared to all-time highs in early March. Shares are up over 600% since its IPO in the spring of 2015. In 2018 Shopify hit over $1 billion in total revenue and gross merchandise volume climbed 56% from 2017 to $41.1 billion.

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There’s something crucial you need to know about Apple’s stock today, especially if you already own it, know someone who does, or have even thought about buying it.

This revolutionary new technology involved in “Project Titan” should make any investor’s ears perk up.

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Back in 2015 Statistics Canada released a report which revealed that the numbers of seniors would exceed the number of children aged 14 and younger for the first time in the country’s history. By 2036, this number could reach between 9.9 million and 10.9 million people. The Conference Board of Canada reported that by 2026, over 2.4 million Canadians aged 65 and older will require supportive care and approximately 131,000 spaces are required for this demographic. This number is projected to reach 3.3 million by 2046, which highlights how crucial senior housing development will be going forward.

Sienna Senior Living (TSX:SIA) is one of the largest owners of seniors’ housing in Canada, and is the largest licensed long-term care operator in Ontario. Shares were up 15.3% in 2019 as of close on March 5. In 2018 the company reported revenue of $641.9 million compared to $557.7 million in the prior year. Sienna Senior Living is poised to expand its Retirement portfolio in 2019 and beyond.

To add to its appeal, the stock also offers a 5% dividend yield. This makes it an attractive long-term hold for income investors.

Canada is expected to experience slower growth into the next decade. The Bank of Canada has projected that growth will already dip below 2% for the full-year in 2019. Anemic growth is expected to become a reality, at least in the medium term, for many of the largest economies in the developed world.

Fortunately for investors, the investing landscape will still be fruitful for those who know where to look. Those with a long-time horizon should evaluate their risk tolerance and stock their portfolios with equities that are well-positioned to thrive in growing markets. The time is now to invest in the economy of tomorrow.

Fool contributor Ambrose O’Callaghan owns shares of Aurora Cannabis.

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