3 Red Hot Megatrends of 2024 to Invest in

Have you heard about Moore's Law of microprocessors?

Gordon Moore, the co-founder of Intel, predicted in 1965 that the number of transistors that will fit on a microprocessor will double every two years.

He also predicted that while this is happening, the price for these transistors would simultaneously come down.

It's more than 50 years later and we still observe Moore's law in effect. It has left a lasting impact on both computing as well as the electronics sector.

The reason I brought up this example is to highlight the disproportionate returns you could have generated investing in this field early on.

Think about investing in Amazon back in 2000 when e-commerce was yet to become mainstream. Or investing in microprocessors in the early 80s.

Keeping that in mind, we'll discuss some of the fastest-growing industries we see today and where and how to invest in them!

These three red hot megatrends are the only ones I like more than artificial intelligence (AI) for 2024.

#1 Genome Testing

Every advancement in medicine can be linked to genome or DNA testing. In industrial terms, it's like reverse engineering the human body.

With genome testing, diseases can be studied with much higher precision and accuracy. It's an effective tool for preventing future pandemics.

At an individual level, genetic and hereditary disease can be mapped and treated at an early stage. The end goal is to improve life expectancy.

While developed countries are adopting it rapidly, in India, it's still a tool for the elite.

The key point to highlight here is the decline in costs of genome sequencing in developed countries.

The cost of genome sequencing has fallen from US$ 10,000 in 2010 to US$ 1,000 in 2021. A decline of 90% in a decade.

Genome testing presents huge potential for diagnostic companies and biotech companies. The top diagnostic companies in India as well as R&D companies like Syngene could benefit.

The other company that could disrupt this segment is Mukesh Ambani's Reliance. The Ambanis are putting big money for getting into genetic mapping.

It was revealed in March 2023 that Reliance was about to roll out a comprehensive Rs 12,000-genome sequencing test.

This would be done via Strand Life Sciences, in which Reliance acquired majority stake in 2021 and owns about 80% of it.

Ambani is known to disrupt markets with pricing products perfectly and relatively cheaper compared to competitors.

#2 Crypto Adoption

Bitcoin at 45K!

Crypto critics have been asked to take a reality check as the price of the largest cryptocurrency continues to build more momentum going into a very important year for cryptos.

Bitcoin was up approximately 8% on the first day of 2024.

Bitcoin's price has had a strong recovery from the sub-US$ 17,000 mark just a year ago.

The appreciation of 173% felt rather quiet throughout 2023, but it has become too hard to ignore now.

Several data points suggest that Bitcoin is nowhere close to losing its sheen in 2024. Points such as the number of unique addresses holding one full bitcoin hitting a new all-time high.

Bitcoin holders are continuously invested without having any interest in selling into the strength that has built up.

All these meaningful price movements say more about the current state of the environment and what the next couple of months could look like.

Things could get really interesting over the next 12 months once there's clarity on ETF approval and as halving takes place.

Whether you like bitcoin or hate it, it's important that you spend some time to re-evaluate what is happening here.

It's not for any reason that Bitcoin is one of the best performing asset over the last decade despite all the chaos and uncertainty surrounding it.

If you are invested or looking to invest in cryptos, we suggest entering the arena with low expectations.

If things go well and bitcoin's price rises, you will be pleasantly surprised. If things don't go well and bitcoin's price goes down, you will have expected it. It's all about closing the gap between expectations and reality.

To know more about this big bitcoin rally, check out the editorial I wrote in December 2023 when the price was still near 40k.

#3 Cybersecurity

The number of cyber-attacks against companies and individuals is increasing exponentially.

Due to the increase in remote work prompted by the pandemic, attacks are up substantially compared to the previous years.

Moreover, the number of IoT devices has exploded in recent years contributing to more weak spots for hackers to exploit.

All of this means that companies in the cybersecurity field are expected to rake in a fortune in the next decade.

With rapid digitisation and increasing cybersecurity threats, select firms are investing in strengthening their digital infrastructure.

Businesses worldwide are estimated to spend US$ 260 billion (bn) by 2026 on cyber security.

The top Indian companies in the cybersecurity space include:

• Expleo Solutions
• Sasken Technologies
• SecureKloud Technologies
• RS Software
• Quick Heal Technologies

In Conclusion

These were the top three megatrends we believe could have a big impact in 2024.

I cannot possibly cover all the high potential industries and their performance in a single article.

So, here are some other industries that I think have the potential to disrupt our world in the next few years.

• Clean Energy
• Semiconductors
• EV/EV Battery
• Artificial Intelligence
• Autonomous Driving
• Gaming
• Smart Metering
• Mining Megatrend
• Data Centres

In conclusion, it's very hard to predict the future and especially market movements.

For every promising industry that became mainstream, there are a hundred others that are equally promising, but they die out.

For the megatrends that we discussed throughout this article, it seems their best days are likely ahead of them.

Happy Investing!

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...