Trade supply-driven products and industries

In a world with dozens of investment options and financial products, everyone wonders where they could invest or in which market and how they could trade financial products in order to improve the returns on their investment and trading portfolios. The answer, although due to the many options offered, appears difficult, perhaps it is more evident today than ever.

The cause of inflation points the way

What deserves particular attention is that the persistently high inflation continues and will continue to exist for a long time to come because the demand is increasing to the extent that the supply cannot satisfy it. In other words, due to the demand for products that cannot be satisfied by the supply of these products. This fact can be a practical guide for your investment and trading options. In light of this, investors and traders should increasingly focus on products whose prices are determined not by increased demand but by finite supply.

Such products, in which the supply tends to be limited, are the innovative products that ensure the future development and prosperity of the planet's societies. These products include a wealth of technologies with new ideas and solutions that will fuel a new era of economic growth. The inability of these products to meet supply will be critical to economies, inflation, investment and trading. These are products, that need support and capital to continue to drive innovation. Products that claim financing that will come from the capital markets and will be supported by financial products offered to investors and traders.

Artificial intelligence

Such products relate to artificial intelligence technologies. Machine learning and deep learning, based on artificial intelligence, have already spread to areas such as financial engineering, fundamentally changing the services of financial companies.

According to GlobalData, over $142 billion in venture capital in nearly 7,000 AI-related deals worldwide in 2021 and 2022, indicating a growing and dynamic position for these groundbreaking applications that will change our world.

Artificial intelligence technology is expected to have an ever-increasing demand where supply will not be met since it will play an essential role in critical sectors such as energy technologies. It will change the way of production and how we consume energy, thus contributing to implementing the global goals to eliminate fossil fuels.

According to the International Energy Organization, the global renewable energy capacity will increase by 75% between 2022 and 2027. And this community will demand increasingly effective management of energy resources through artificial intelligence.

New agricultural cultivation

Population growth and declining crop yields due to climate change raise the big question of food security, suggesting further worsening of supply chain fragility. In light of this, we are led to enhance the capabilities of technologies such as laboratory meat production and vertical cultivation, that is the method of growing crops in stacked layers in a controlled environment.

Vertical farming is more land efficient than traditional farming as it can be placed closer to customers and regenerate unused urban real estate. Such proposals in food technologies will enhance food security, make food supplies sustainable and open new investments and jobs. Grand View Research forecasts that the global vertical farming market will reach $24 billion by 2030, with a compound annual growth rate of 20.1% from 2022 to 2030.

Many companies have already invested in innovative agricultural and breeding technologies worldwide, with demand outstripping supply in the coming years. Capital markets play a critical role in scaling and financing food production innovation. They will provide access to a rich pool of investors and a diverse ecosystem of traders, where capital markets can provide growth capital and financial products to companies and industries with promising agricultural commodity innovation prospects.

Growth of the next generations

Artificial intelligence and new farming are just two of the sectors where the demand will not be able to be satisfied by the supply in the coming years. Correspondingly sectors are:

• Next-generation information technology.

• Advanced hardware.

• Advanced materials.

• New energy and environmental protection.

More and more investment funds will be directed to these sectors, with investors and traders focusing on the supply of the products from these sectors, as it will take time to respond to the increasing demand. At the end of the day, the products and sectors that fall short of growing demand are the ones that usually drive the economic growth of the next generations. Today we face many innovative products and sectors seeking billions in investment and trading capital.

Until these capitals are satisfied, such industry sectors and their products will prove to be the most attractive options for investors and traders. At the same time, they will play the determining factor in the retreat and stabilization of inflation at normal levels. Generally, the more supply and demand converge, the more inflation will deescalate, but that will take time. Until then, take advantage of innovative industries and their products.