4 Unconventional Stock Types on the Rise

The technology available for consumers and businesses is improving constantly. New industries and companies are forming, and your investment options are expanding. Stocks in finance and technology almost always do well. You can also diversify your investments with more unconventional stock types. These stocks are riskier than offerings from more established companies, but their potential for growth is greater as well. You can also invest in exchange-traded funds with several unique stocks. Many are available, and they work a lot like mutual funds. Keep reading to learn more about unconventional stock types on the rise.
Renewable Energy
Renewable energy includes solar panels, wind farms, and machines that generate electricity from ocean waves. You can also invest in companies that make electric cars, geothermal heating and cooling systems, and other green products. Many businesses and governments are making a large investment in green energy now to lower costs in the future. Renewable energy jobs are growing, and consumers are becoming more environmentally conscious as well.

Sustainable energy is already extremely popular in Europe and many other parts of the world. The United States should continue following this trend. The organizers for the 2020 Olympic Games in Tokyo, Japan, plan to power all the events with renewable energy. Many renewable stocks should benefit from all the publicity, including several in the United States. Buying before they start rising rapidly will let you keep your initial investment low and increase your earnings.
Virtual or Augmented Reality
Virtual reality (VR) and augmented reality (AR) have been around for a while, but recent improvements in technology have made them much more popular. Facebook’s Oculus Rift and Sony’s PSVR for the PS4 are becoming more popular. These are also large companies that shouldn’t decline in value anytime soon, and an extensive selection of games are already available. There are many other uses for VR technology, including job training, therapy, and safety testing.
Marijuana
Most states have laws that allow medical or recreational marijuana use, and this growing industry is already worth billions of dollars. There are many cannabis companies out there, such as Area 52, that are becoming increasingly popular. However, the Federal government still classifies cannabis as a Schedule 1 drug. For now, the DEA doesn’t enforce federal law in legal states, but the policy could change. This makes banks reluctant to lend to marijuana businesses. Many property owners refuse to lease or rent to them because of the danger of legal troubles later.
Despite these risks, the best marijuana stocks can yield amazing returns. In addition to cannabis sellers, you can invest in pharmaceutical companies, gardening suppliers, growers, packaging manufacturers, and more.
Drones
Unmanned aerial vehicles (UAV) or drone stocks are becoming more popular as the technology improves. Drones are used for surveillance, crop management, deliveries, filmmaking, photography, and more. You can invest in drone manufacturers who specialize in retail sales or government contracts. Stocks for the makers of drone accessories are also available.
No matter what types of stocks you choose, make sure you do plenty of research. You can protect yourself from fluctuations in one industry by purchasing shares of unconventional and common companies.