Six long-term trends that might impact your investments

In the current issue of FORTUNE magazine, Tom Gardner, CEO of The Motley Fool and bestselling investment author, outlines six demographic supertrends that could power certain industries to sustained market out-performance over the next five years. In addition, Gardner picks one accompanying stock that he thinks will best leverage each of these trends and outpace the performance of the S&P 500 over that time period. (He seems to be fairly confident in his picks, even going so far as to promise to shave his head if the six stocks he selects do not beat the S&P 500 over that time period. At that point, of course, he would have lost his hair, while you would have lost your shirt...) Anyway, here are the six trends he identifies:

(1) The continued growth of the home entertainment industry, as more and more consumers 'want to transform [their] living rooms into Cineplex Odeons, complete with six-foot-wide flat screens, surround sound and the full integration of PCs, iPods, Wiis, TiVos, and DVD players.'

(2) Rising oil prices

(3) The continued growth of the restaurant industry (e.g. fine dining, fast casual, family dining, fast food) within America, as families continue to eat more meals than ever before outside of the home

(4) The revival of the homebuilding industry

(5) The rise of the 'digital doctor's office'

(6) The continued growth of the alternative sports industry, as more youngsters embrace sports like surfing, skateboarding and snowboarding.


NOTE: Please keep in mind that TradeKing does not specifically endorse any of the securities or trading strategies mentioned. Depending on your risk-reward profile, this trade may or may not be suitable for your portfolio.

[image: The Motley Fool]