Investing megatrends hidden in federal budget

The government revealed some major trends in the federal budget that may be worth getting in on.

·2-min read
A young woman looks at the performance of her investments on her phone.
The government has upped spending in these megatrend investments. (Source: Getty)

The cost-of-living crisis has made it difficult for households to keep their heads above water but, for those who are still managing to pop some money away for investing, the federal budget presented some opportunities.

“The budget papers present a complicated picture for investors in the short term as, while providing short-term stimulus to the economy, it also adds to the risk that the RBA may need to raise interest rates further,” Betashares chief economist David Bassanese said.

“That said, somewhat hidden from the headline-grabbing social-policy initiatives, the budget papers also reveal a growing government focus on megatrends that are shaping our world.”

Cyber security

One major trend was cyber security, with the government increasing spending by $101.6 million to strengthen Australia's online defence capabilities.

“With nation states and criminals looking to cyberspace to disrupt and steal, increased spending to bolster online defences continues to be the norm,” Bassanese said.

“As a result, global cybersecurity companies are expected to benefit from additional spending.”

Artificial intelligence

“Generative AI technologies, like ChatGPT, are continuing to capture both the consciousness of the general public and investors, so it’s little surprise the Australian Government is spending $101.2 million over the next five years to support businesses to integrate quantum and artificial intelligence (AI) technologies into their operations,” Bassanese said.

“Businesses, big and small, are turning to these AI technologies to make their businesses more efficient and responsive to their customers.

“While these local budget measures on their own are unlikely to move the share prices for companies in these emerging innovative global sectors, they do highlight that public sector awareness of these megatrends is also growing alongside that of the private sector.”

Follow Yahoo Finance on Facebook, LinkedIn, Instagram and Twitter, and subscribe to our free daily newsletter.