Can Investing Become the Hottest Job of this Decade & Beyond?

Jul 19, 2021

Rahul Shah, Editor, Profit Hunter

I recently came across a series of interesting tweets from a certain balajis.

The gentleman has asked a very pertinent question.

  • 'Farming was the 1800s. Manufacturing was the 1900s. Counterintuitively, could investing become the most common "job" of the 2000s?'

Put differently, since investing has become such a mass phenomenon and has turned everyone into an investor, can this go all the way?

Can most factory workers become investors in the 21st century just as most farmers became factory workers in the 20th?

I know what you are thinking. If everyone becomes an investor, who will do the jobs?

A similar question was posed to the farmers before they migrated to towns during the industrial revolution.

--- Advertisement ---
Investment in securities market are subject to market risks. Read all the related documents carefully before investing

How to Uncover High Potential Small Caps Opportunities

In This Market

Present market sentiment aside, there's an underlying economic force which could cause the Small Cap Index to soar over the next decade...

And with a few well-placed investments today, you could potentially build life changing wealth over the long term.

Explore this opportunity now
Details of our SEBI Research Analyst registration are mentioned on our website - www.equitymaster.com
---------------------------------------------------

The worry then was 'If most farmers move to factories, who will man the farms and look after agricultural production?'

Well, more than a century later, the answer is loud and clear. Despite people moving to factories by the millions, agricultural production hasn't suffered.

In fact, thanks to mechanisation, better techniques and increased use of fertilisers and chemicals, total agricultural production has grown by leaps and bounds.

Thus, what has happened to agriculture can happen to manufacturing as well.

Factories of the future may not need that many humans after all. Yet, they can churn out greater quantity of products and of much better quality.

How? Think computers.

Digitisation and software have already replaced millions of humans across the world. Now we have robotics and artificial intelligence breathing down our necks.

Make: Your Investing Stress-free with Value for Money Stocks

In fact, I experience this shift first hand every day. I don't remember the last time a human voice has sold stuff like personal loans and credit cards to me over the phone live.

Almost always, it's a pre-recorded message playing in a loop, a form of robot if you will.

Robots are coming for humans in other areas as well. As per analysis from Oxford Economics, up to 20 m manufacturing jobs around the world could be replaced by robots by 2030.

That's huge and this number can only go up in the future. Obviously, the labor displaced by the upcoming robotic tsunami has to be absorbed somewhere else.

Is investing or finance such a place? Are those displaced by robots and artificial intelligence going to find comfort in investing?

Is trading exotic cryptocurrencies and meme stocks the next big wave of the future?

Well, to be honest, I wouldn't want to be a part of the economy where the majority do nothing but trade stocks and commodities for a living.

This activity may prove productive for those 5%-10% of traders or investors who've figured out a way to earn staggering returns consistently, year in and year out.

--- Advertisement ---
Investment in securities market are subject to market risks. Read all the related documents carefully before investing

Could the Bears Strike During Election Season?

Discover how this Safe Stock Strategy Could Protect Your Wealth & Potentially Lead to Big Long Term Gains

Full details here
Details of our SEBI Research Analyst registration are mentioned on our website - www.equitymaster.com
---------------------------------------------------

However, for the vast majority, it's very difficult to earn long-term returns greater than the rate at which the underlying economy is growing.

In fact, most fail at achieving even these returns. Thus, they would be better off letting the professionals manage their money or perhaps invest in index funds.

If they want, they can set aside 10%-15% of their corpus and try and manage this sum as a part time activity.

However, to plunge full time into this is not the best use of their time in my view. They'd rather do something that not only adds value to them but also to the society at large.

Flipping stocks every few days for a small percentage gain is certainly not one of them.

I hope you will agree.

Let me know what you think, dear reader. Write to me here.

Warm regards,

Rahul Shah
Rahul Shah
Editor and Research Analyst, Profit Hunter

Recent Articles

Rebound Overdue in Top Hidden Fintech Stocks May 17, 2024
Recent RBI penalties have skewed the valuation metrics in India's financial sector.
Indian Solar Stocks: Impact of the US China Tariff War May 16, 2024
The second order effects of US China trade war.
Luxury Investing: The New Megatrend May 15, 2024
These stocks are profiting from the Indian luxury class.
Make Better Returns than Big Investors in the Market May 14, 2024
Can you beat the big boys of the stock market at their own game? Read this...

Equitymaster requests your view! Post a comment on "Can Investing Become the Hottest Job of this Decade & Beyond?". Click here!