Investing is one of the most popular ways of adding to your net worth. The difficulty is that you need to be able to forecast which trends will be popular months or even years down the line.
This is not an exact science. The past few years have been extremely volatile for investment, largely because of the COVID-19 pandemic. For instance, when the pandemic started in 2020, multiple stock indices lost over 20% of their value between March 6 and March 8.
However, markets recover, and some industries show clear promise for 2022. This article lists some of the top investment trends for 2022.
1. ESG investing
Environmental, social, and governance (ESG) concerns are some of the most pressing of our time. The uncertainty of the COVID-19 pandemic drew people’s attention toward sustainability, with workers, consumers, and investors alike all favoring ESG practices.
Since the 90s, our global energy consumption has increased by as much as 14 times. Corporations and governments are becoming increasingly concerned with renewable energy.
Analysts from Bloomberg Intelligence have forecasted that by 2025, assets associated with ESG issues could soar as high as $50 trillion. This is unsurprising given the increased emphasis on the importance of sustainability in the world today.
During periods of market volatility, healthcare stocks usually remain fairly secure. After all, there is a consistent level of demand for healthcare services and products that is not really seen in other industries.
Additionally, this demand for healthcare services and products is only increasing. This is in part due to the impact of the coronavirus pandemic. However, it is also due to the large aging populations in China and India.
In short, healthcare stocks are quite stable and are only expected to increase in value.
The metaverse is rapidly increasing in popularity, with more and more celebrities and companies investing in this virtual world. As technology grows more advanced and accessible, tech companies are making serious strides forward in developing the virtual metaverse.
These spaces will allow people to shop, play, learn, and even exercise in a digital environment. With an increasing number of businesses capitalizing on the metaverse trend via the release of non-fungible tokens (NFTs), it seems that the future of the metaverse looks to be a promising one.
Artificial intelligence (AI) was once a concept in science fiction. Now, however, advancements in technology have made it a reality.
As AI has grown more powerful, it has also become more wide-reaching, spreading into almost all industries. Artificial intelligence powers everything from top-of-the-range mobile phones to smart kitchen appliances and even investing.
Analysis from International Data Corporation indicates that the value of AI could reach $500 billion by 2024, so it’s a good time to jump on board the trend.
Music may seem like a curious addition to this list. However, with the growth of music streaming services and virtual concerts, it’s thought by analysts at Goldman Sachs that the music industry could be worth as much as $131 billion by 2030.
What’s more, now that coronavirus restrictions are easing over much of the world, live-event businesses may also see an increase in value. This will also contribute to the overall worth of the music industry in a considerable way.
When the pandemic broke out and people’s lives became more and more online, it soon became apparent how important cybersecurity is. With an increasing number of businesses making the move to online platforms, such businesses could be leaving themselves open to cyber attacks.
While the growth of the cybersecurity industry remains quite slow as of yet, it’s expected that this industry will become massive in the future. Investing now is a good idea!
With inflation rates rising, investors worldwide are searching for ways to protect themselves. Gold is a popular investment choice for people looking to protect their capital. The value of gold has historically been observed to rise alongside inflation.
Besides being useful protection for your capital, investing in gold is also useful for diversifying your portfolio. The multiple benefits of investing in gold will make it a popular choice in what some analysts believe will be a tumultuous year for investing. You can invest in the gold market through shares of gold miners, ETFs, and trading on the commodity market.
If you’re looking to invest this year, hopefully, this article has provided you with some ideas of what you could put your funds into. Just make sure that before you make any investment you research thoroughly.