Stock Market Sectors To Watch

Here are the stock market sectors which I believe show astonishing potential over the next seven years. They represent the cornerstone of my investment strategy and each of the ideas will be developed in my free e-alert, Garry Writes.

Oil

The days of cheap oil are over. We see significant price rises in the cost of energy in the years ahead and the Peak Oil crisis, as explained by the Hubbert curve, will become a dominating sector theme.

Latest Investment Strategy Report: Investing in Oil: The Days of Cheap Oil Are Over

Latest Oil Sector Article: Why You Should Buy Integrated Oil Today

Uranium

Nuclear power will be the most significant alternative to oil as the price of crude skyrockets. Just consider all the uranium stocks that have listed on the stock market in the last two years. Most of them are assetless and, in my mind, dire investments – but there are some stunning opportunities in the sector. if you know where to look. Indeed, I have just written a report on the uranium sector - The New Nuclear Explosion: 2007-2015.

Latest Investment Strategy Report: Investing in Uranium: How To Select The Shares With Potential

Biotechnology

Big pharma groups are having a bit of a “mid-life” crisis. In the next few years some of their blockbuster drugs are going to come off-patent and they have nothing in their pipelines to fill the gap. This is happening across the industry so M&A is going to be a significant theme as pharma giants snap up potential new products. Indeed, I have it on good authority that US giant Pfizer has allocated a staggering $15bn to this effect. We are going to ride that M&A wave. This subject is also close to my heart as I have a degree in genetic engineering.

Latest Biotechnology Sector Article: The Bush Administration's War on Science

Diamonds

De Beers has been selling off its stockpile of diamonds, which has kept the price artificially low. This is now coming to an end. Demand from Asia is increasing and I believe the diamond price will increase significantly over the next few years. It's a simple case of supply and demand - the purest law in economics.

Latest Diamond Sector Article: Investing In Diamonds: Is This A New Way To Play The Sector?

Infrastructure

I am bullish on construction and infrastructure stocks as demand from emerging economies accelerates. The boom in India and China still has a long way to run and there are truckloads of cash available shipping, railroad and construction groups.

Alternative energy

Although nuclear will be the way forward to meet our rising energy needs, alternative energy will also be a significant area of development. I am cautious, however, on the biofuels sector. As any investor in the sector over the past few years will know full well, Kermit the Frog was right: it isn’t easy being green. However, there are ways to play the sector and solar and wind energy look set to take off.

Latest Alternative Energy Sector Article: Biofuel Shares: Outlook Bleak As Damning New Study Is Published

I expand more on all of these issues in my FREE investment strategy newsletter Garry Writes. To get this service, for FREE simply fill in your email address below

Information in Garry Writes is for general information only and is not intended to be relied upon by individual readers in making (or not making) specific investment decisions. Appropriate independent advice should be obtained before making any such decision. Garry Writes is not regulated by the Financial Services Authority. Garry Writes is published by Fleet Street Publications Limited.