High Tech Sector

21st Century Business

Technology has always been a key stock market driver. Some of the most enduring ways to create value emanate from new abilities to fulfill unmet needs. Research and Development has always been an evolutionary function, alternating between dramatic breakthroughs and continuous but marginal improvement. There are three 21st century trends that have begun to spawn new leaders in stock market growth.

Biotechnology has already replaced some old fields of specialty chemicals. There are three main branches of Biotechnology which have made deep inroads in stock market prospects, and Delphi analysis predicts that this trend will continue and spread as well.

Antibodies and new vaccines, genetic engineering, new imaging systems, and artificial materials for human anatomy, have given rise to profitable enterprises which belonged to realms of fantasy only a few years ago. Healthcare and agriculture are the main beneficiaries of biotechnology. Medicine, diagnostic techniques, and pest management have changed dramatically, and further improvements are imminent.

Nanotechnology makes even bigger stock market waves than biotech. It may be a few more years before the stock market world has more visible examples of how small particles can revolutionize business, but the use of engineered nano-particles in sun-screens and other cosmetic products, is an example of new brands and lines of revenue that are rooted in nanotechnology, and which affect financial statements already.

Conservation is a third major technology driver, which has transformed stock market valuations in recent times. Chemical treatment of automobile exhaust, bacterial remediation of liquid effluent, and sustainable forms of energy, are all technologies spurred by pressing concerns about pollution and the environment. Stock market trends are increasingly influenced by companies which are able to overcome drawbacks of their environmental footprints.

The stock market scene is ready for a new canvas. There are many ‘new kids on the block’ and investors must look out for a whole new breed of winners! Companies which plough substantial parts of their cash flows to incorporate these new technologies in to their business processes, stand to gain the most. Entrepreneurs who can ally with large corporations to bring their discoveries to market, will also experience exceptional growth and profits.