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3 Reasons Why Investors In The Online Shopping Sector Are Set For A Great Decade Ahead
Do you online shop and more importantly do you think you might online shop more over the next 5 to 10 years? Chances are you answered yes to both questions. Your friends and family are very likely to answer the same.
Compare this to the growth of the online shopping industry. Are there any reasons that would cause a backward step in growth over the next decade?
We’ve considered this question long and hard. Besides a major world war, the only other reason we’ve come up with is this. The internet stops working globally.
Not remotely likely in other words and if either of those things happened, your investments are probably not going to be front of mind. Don’t just take our word that online shopping is a theme with great investment prospects.
Here are 3 simple but powerful facts that back up your intuition about online shopping being a decade long growth trend going forward.
Why is this important?
Well, from that simple observation, you have already identified that the rapid growth of the online shopping industry is a near unstoppable trend over the next decade. Investment professionals like to call this “structural growth”. It is just a fancy word for saying something will grow irrespective of what is going on in the broader economy.
How is this different from some of the other trends or industries you might have invested in?
Let’s put it this way. If you have invested in the mining resources sector, you’ll know that making money depends a lot on what commodity prices are trading at which is quite unpredictable over any meaningful period. If you are a shareholder in the banks, you might like their dividend yield but in the back of your mind, you are probably worried how their share prices will hold up if property prices decline significantly.