Shares set to make big gains this decade

Ten years ago I saw in the new millennium standing by London’s Tower Bridge waiting for the ‘Wall of Flame’.

Flames 200ft high were supposed to leap above the water while zipping down the river from Tower Bridge to Vauxhall Bridge.

But it was a flop. Something went wrong. It didn’t happen.

With hindsight, I should have seen that as an omen for the UK – a dud start to calamitous era for the country’s economy.

But now we have entered a new decade. This brings fresh hope. It’s time to put the last dismal ten years behind us and look forward with optimism to a new decade.

Back in 2000 all the talk was of technology. It was going to change our world – and it has. There is more to come from this quarter. But right now the world is facing more important challenges than the delivery of digital entertainment into everyone’s pocket.

Today we need to find answers to pressing global problems and I think we will be surprised – pleasantly – by the rate of progress. Investors should make sure that the winds of change are behind them. With that it mind, here are three mega-trends for this century’s teenage years.

Health: Big profits to be made in ‘Little Pharma’

Nowhere is progress being made faster and with more spectacular results than in the field of human health. The mapping of the human genome, stem cells and new biological rather than chemical drug compounds are all improving medical outcomes.

Technology is speeding up the research process and helping doctors perform complex procedures. There will be improved vaccines and progress in the treatment of dementia.

The key thing for you to note is where the profits of this boom are going to be found. Big Pharma is stuck with an outdated business model.

The winners will be found amongst the tiddlers of the pharmaceutical world. Who will follow the 2009 success of Alliance Pharma (+909%), Verona Pharma (+390%), Immunodiagnostic Systems (+433%)? I’m on the case, looking for likely candidates…

Energy: Cash in on the race for smart power technology

The world’s population is growing rapidly. People are becoming ever more demanding. Consumption levels continue to increase. The challenge of finding enough new sources of energy to meet the demands of the increasing numbers of consumers would be tough enough on its own. But now we have to do so without destroying the planet in the process.

Wherever I look I see the problem being tackled. Whether it is oil-excreting bugs or machines to harness the forces of the ocean, the world’s brightest brains are applying themselves to the problem.

Nuclear power seems sure to play a bigger role. Clean coal will be another hot topic – I unveiled a great way to play this theme in the January issue of Red Hot Penny Shares.

Wind and solar will generate an increasing, but still minor, proportion of our energy needs. Fuel cells will come of age – so you should keep a close eye on penny share AFC Energy (ticker: AFC).

But for the early winners from the crisis look to the companies that can cut our energy usage. We have already seen some big winners here in 2009 – Cinpart (+793%) and Sabien Technology (+293%) – and I am looking out for more of the same in 2010…

The Emerging Markets: Where to look for the next powerhouse economies

This has been the decade in which the West’s grip on the global economy has finally fallen loose. Once the heavily populated countries of China and India got their capitalist credentials in order, nothing could ever stop them.

What we have seen so far is only the beginning. I expect others to join the party in 2010. This could be the year for Africa. This summer’s football World Cup will shine the light upon a continent that is just, in a stuttering way, beginning to fulfil its vast potential. Brazil, with its vast agricultural wealth, is another country to watch.

The commodity super-cycle is very much in place, and I am especially watching lumber. While all other commodities saw rocketing prices in the last decade, lumber actually became 32% cheaper.

But now the building of affordable, timber-framed homes in China is transforming the balance of supply and demand in this globally traded industry.

Other investment themes are well established and will prevail. Demand for coal and copper should increase. The same goes for gold. Demand for such raw materials will challenge the productivity of the mining industry.

Mind-blowing gains await the bold investor

Those able to make a lucky strike and take it through to production will make fortunes. Last year saw bold penny share investors reap staggering rewards – Amur Minerals (+4,043%), Norseman Gold (+2,985%) and Frontier Mining (+2,685%). There could be similar success stories in this exciting sector in 2010, and I have picked out two likely candidates in January’s Red Hot Penny Shares.

So climb aboard! Forget the last ten years and look ahead. There are some mighty challenges. But challenge means opportunity. Opportunity means the chance of success. And, in business and the stock market, success means profit.

To find the most likely source of profit, and to navigate your way through the new decade, I’d be very happy to be your guide.

To get my penny share ideas in your inbox twice each week, at no cost, I invite you to sign up for my free email, Penny Sleuth. Follow this link now and you’ll receive your first issue tomorrow.

Good investing,

Tom Bulford
For The Right Side

P.S. In addition to my free Penny Sleuth email, I also write a monthly investment advisory called Red Hot Penny Shares. In this I provide more in-depth recommendations on exciting pharmaceutical, natural resources and emerging markets opportunities. To claim your 3 month no-obligation trial subscription to Red Hot Penny Shares just call customer services on 0207 633 3600 between 9am and 5pm. Tom.

Red Hot penny Shares is a regulated product issued by Fleet Street Publications ltd. Your capital is at risk when you invest in shares, never risk more than you can afford to lose. Penny shares can be relatively illiquid and hard to trade. There can be a large bid/offer spread so if you need to sell soon after you’ve bought, you might get less back than you paid. This can make them riskier than other investments. Please seek advice if necessary. 0207 633 3600.

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Shares set to make big gains this decade

Revealed: the three mega-trends of the new decade