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3 Sectors to Own for the Next Decade

These sectors will reward patient investors in the long term

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WaterTap185Consumers’ need to play video games on their smartphone will fade. Investors will eventually figure out that gold is more of a premise than an asset. Sooner or later, homeowners will stop buying electricity from their utility company because they’re making it themselves using rooftop solar panels.

But people are always going to need washing machines, bulldozers and jet engines.

The industrial sector rarely looks exciting. That’s because it isn’t. This year’s projected income growth of 10.3% trails the broad market’s 12.8% growth track, and next year’s projected bottom-line improvement again trails the overall market’s. Thing is, while the industrials rarely hit a home run, these stocks also avoid the majority of the cyclical problems that zap sectors like financials and materials. The Vanguard Industrials ETF (VIS) is one of your best bets to tap into the ultra-consistent sector.

Top industry in the industrials sector: Water infrastructure.

Every day in the United States, 850 water mains (the pipes that route water from trunk lines to houses) break. Not every year — every day. The crumbling water main infrastructure is a microcosm of deteriorating pipes and fittings found at all points between the water company’s supply and your home. Some experts suggest it will take more than $350 billion to fix all of our water infrastructure problems. The best-of-breed name here may be Northwest Pipe (NWPX).

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