10 Best Sectors To Invest In Long-Term

Hamna Asim
12 min read

In This Article:

In this article, we discuss 10 best sectors to invest in the long-term. If you want to see the top 5 sectors popular among smart investors, head directly to 5 Best Sectors To Invest In Long-Term. 

The S&P 500 had a robust performance in the first half of 2023, ending June with a gain of over 6%. Overall, the index has risen almost 16% as it enters the third quarter of this year. In addition to that, as we previously reported, the NASDAQ 100 Index has skyrocketed 40% in 2023, regardless of fears about a potential bubble. In 2023, technology stocks, growth stocks, and cryptocurrencies emerged as star performers, benefiting from renewed interest in risk assets. As we enter the second half of 2023, there are signs of inflation starting to cool off. Nonetheless, market experts are skeptical that the Federal Reserve's efforts to combat inflation are not yet complete, and there is still a possibility of the US falling into recession.

In 2023, Fidelity Investments expects some consumer staples firms to outperform. Ben Shuleva, Fidelity’s sector portfolio manager, commented at the end of December 2022: 

“In 2023, many of the trends that emerged in 2022 will probably continue. However, consumers may be more sensitive to further price hikes than they were to previous price hikes—particularly if the economy softens further and the unemployment rate rises. Those best positioned for this backdrop may include companies that can raise prices further without losing sales volumes.”

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Similarly, precious metals like gold are considered to be safe haven assets against a backdrop riddled with inflation, devaluation of currency, and macroeconomic weakness. Eric Strand, manager of the AuAg ESG Gold Mining UCITS ETF, told CNBC in December 2022: 

“Central banks as a group have continued, since the great financial crisis, to add more and more gold to their reserves, with a new record set for [the third quarter of] 2022. It is our opinion that central banks will pivot on their rate hikes and become dovish during 2023, which will ignite an explosive move for gold for years to come. We therefore believe gold will end 2023 at least 20% higher, and we also see miners outperforming gold with a factor of two.”

In addition to that, Citibank analysts maintained an "Overweight" rating for the healthcare sector for 2023, setting aside concerns about the past year's strong performance. They emphasized the sector's defensive nature and held particular optimism about pharmaceuticals.

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