Recent financial market volatility has led wealth managers to recommend investing $100,000 in stable, "old economy" sectors. These include blue-chip industries such as transportation, materials, utilities, energy, and agriculture, which are often cash-generative, asset-heavy, and less susceptible to technological disruption. These sectors are also poised to benefit from the AI boom, as AI requires significant investments in energy, infrastructure, materials, and machinery.
Agriculture is highlighted as a sector offering protection from technological disruption, with specific opportunities in agricultural machinery, seeds, and fertilizers. Despite a current downturn in the agricultural cycle and low crop prices, supporting businesses are well-positioned for recovery due to their strong pricing power and innovation. ETFs like the iShares MSCI Agriculture Producers ETF (VEGI), VanEck Agribusiness ETF (MOO), and Global X AgTech & Food Innovation ETF (KROP) offer diversified exposure to this sector.
Digital payments, particularly credit card companies, also present a stable investment opportunity. These businesses exhibit consistent, albeit slower, growth compared to AI-driven firms. Experts suggest that their strong network effects and established partnerships make them resilient to disruption, with companies like Visa, Mastercard, and PayPal offering attractive long-term prospects. The Amplify Digital Payments ETF (IPAY) and Fidelity Crypto Industry & Digital Payments ETF (FDIG) allow investors to target this area, with FDIG offering exposure to both digital payments and blockchain-related companies at a lower expense ratio of 0.39%.
Energy and materials are identified as strong performers. The energy sector has been a standout due to geopolitical uncertainty. Both materials and utilities are projected to experience double-digit earnings growth in 2026. These sectors are considered structural winners, integral to the AI buildout, and can perform well regardless of specific AI outcomes. However, risks include elevated oil prices increasing fertilizer costs, which could prolong the agricultural downturn.
