Jasmine Birtles
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3 Industries I’m Watching That Aren’t Tech or AI in October 2026
Ruby Layram
1st Oct 2026
If you’ve opened any finance news this year, you’ll have noticed it’s all chip stocks, data centres and AI. And with the Bank of England warning on 30 September about stretched AI valuations and debt, plenty of UK beginners are wondering what else is out there.
So here are three industries I’m keeping an eye on this October that have nothing to do with tech or AI: defence, pharmaceuticals and gold mining. I’ll explain why each is in the news, what could go wrong, and how a beginner might think about them. Watching is not the same as buying, so treat this as a research list, not a shopping list!
Why look beyond tech at all?
Many global index funds are weighted by company size, so they lean on the biggest firms. The provider’s own page for the iShares Core MSCI World ETF shows information technology at 31.39% of the fund. Spreading your money across different industries is called diversification, and the idea is simple: if one area has a bad year, others may hold up better. It’s no guarantee, but it’s one of the few free lunches in investing.
1. Defence: governments are spending more
Defence budgets across NATO countries are heading up. The UK has a target of spending 3.5% of its national income (GDP) on defence by 2035, and defence shares have been in the headlines all year.
One report put the order backlog at BAE Systems, the UK’s biggest defence firm, at around £75 billion, which gives it a long runway of contracted work. Other UK names often mentioned include Rolls-Royce, which has a defence arm alongside civil aviation, and Babcock International, which works on naval and nuclear programmes.
The risks
- Politics cuts both ways. A peace deal or a change of government priorities could cool the story quickly.
- Valuations. After a strong run, good news may already be in the share price.
- Ethics. Some investors don’t want defence in their portfolio, and some funds exclude it.
Rather than picking one company, some investors use a defence ETF (a basket of defence shares) to spread the risk. We’ve covered options in our guide to the best defence ETFs for UK investors.
2. Pharmaceuticals and healthcare: steady demand, big deals
People need medicines whatever the economy is doing, which is why healthcare is often called a defensive sector, meaning it tends to be steadier than most.
Recent news shows the sector is active: on 29 September AstraZeneca agreed to take a $2 billion stake in Summit Therapeutics to push cancer research forward. The UK pharmaceuticals sector rose around 1.5% that morning, with AstraZeneca up 1.7% to a two-month high and GSK also up 1.7%, according to a market report from that day.
The risks
- Trial failures. A drug that flops in testing can knock a share price hard.
- Pricing and policy. Governments and health systems can push drug prices down.
- Patent expiry. When a blockbuster’s patent ends, cheaper copies arrive and revenue can drop.
- Defensive isn’t immune. Shares can still fall, especially when the whole market sells off.
Big pharma tends to pay dividends, which are cash payments to shareholders, but dividends are never guaranteed. A healthcare or global ETF can give you exposure without betting on a single drug trial.
3. Gold miners: a puzzle worth watching
Gold hit a record of around $5,420 an ounce on 28 January 2026. By early September it was trading roughly 20% below that, around $4,360, and was up only about 0.7% for the year, as bond yields climbed and traders bet on higher US interest rates (according to Mining.com on 1 September). Yet gold mining shares have done the opposite. The NYSE Arca Gold Miners Index jumped 33% in August, its best August since at least 1994, with individual miners up 40% or more.
That gap between the metal and the miners is interesting, but also a warning sign. One analysis argues the rally looks driven by traders closing bets against miners and chasing leverage rather than by solid proof gold has bottomed. It also notes mining costs have risen about 35% since 2020, so a lower gold price could squeeze profits quickly.
The risks
- Higher volatility. Miners tend to swing more than gold itself, in both directions.
- Costs. Labour and energy costs can eat into profits.
- Rates. Higher interest rates have tended to weigh on gold because it pays no income.
This is the most volatile of the three. If you’re curious, many people keep it to a small slice of their portfolio and use a fund rather than a single miner.
Quick comparison
| Industry | Why it’s in the news | Biggest risk | Typical beginner route |
|---|---|---|---|
| Defence | NATO spending rising; UK target 3.5% of GDP by 2035 | Policy or peace-driven shift; high valuations | Defence ETF |
| Pharma / healthcare | AstraZeneca $2bn Summit stake (29 Sept) | Trial failures, pricing pressure | Healthcare or global ETF |
| Gold miners | Miners +33% in August while gold fell | High volatility, rising costs | Small position via fund |
What to do next
- Check what you already own. You may already hold some of these industries inside a global fund. Look at the sector breakdown first.
- Pick your goal. Stability, income or growth? Each industry here suits a different one.
- Choose a fund over a single share if you’re new. It spreads risk across many companies.
- Check the fees. Compare ongoing charges and any platform costs before you buy.
- Keep it small and regular. Treat these as a slice of your portfolio and invest gradually. Start small, be patient.
Risk disclaimer
Not financial advice. This article is for informational and educational purposes only and is not regulated financial advice or a personal recommendation. Mentioning an industry or company is not a recommendation to buy or sell it. Investing involves risk, the value of investments can go down as well as up, and you may get back less than you invest. Figures are as reported between 1 September and 1 October 2026 and can change quickly. Do your own research or speak to a regulated financial adviser.
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