In the wake of the September 11 terror attacks, certain companies and industries have gained investment appeal:
Telecommunications companies may gain ground as a result of air travel cutbacks, which will mean more business is done by phone. In addition to increased use of cell phones, it’s probable that video and advanced audio teleconferencing will gain popularity.
Private jet use is bound to increase as many business travelers remain skittish about commercial flights. Even before September 11, America’s private jet fleet had hit 8,000, up from 5,000 in 1990.
Private security concerns report a surge of inquiries. While companies supplying guards and alarms have been growing slowly, firms offering radio frequency identification, electronic surveillance, closed-circuit TV access control systems, and biometrics had been reporting annual growth rates up to 50%, even before September 11. (Biometrics is the term used for the identification of individuals through retinal or iris scanning, fingerprints, face recognition, etc.)
Defense contractors will attract more business. For the past decade, federal outlays on defense have increased at a slower rate than inflation. Going forward, defense spending might exceed the inflation rate by 5%, which means annual increases in the 8% range. Most of the increase is expected to be in aerospace and electronics, rather than ships and armor.
