10 TIMELY INVESTMENT TRENDS EVERY INVESTOR SHOULD BE AWARE OF
Recently we have seen unprecedented movements in the financial markets. With the crypto crash and the recent stagnation of the stock markets, some have been left scrambling to recoup their losses.
Globally, Governments have been spending big on stimulus packages, and inflation has hit record numbers. We are living in unprecedented times, and we are heading into what experts agree is a highly unpredictable future for investors and businesses.
Yet, in times of the greatest crises lie major opportunities. Now is not the time to continue with the same investment strategies you had been doing prior to 2022. Here, we look at 10 key investment trends that every investor should know.
Dollar destruction
Due to the recent pandemic, 35% of all U.S. Dollars in existence have been printed in the last 10 months. But endlessly printing money does not help economies and creates further divide in the wealth gap.
With inflation soaring and money being worth less and less, banks around the world are predicting a recession towards the end of 2023 and early 2024. This recession is said to be worse than we have previously seen with things getting worse before we start to see any recovery.
To combat inflation there is actually very little a country can do other than printing more to make the physical currency more expensive to store and move. But by doing this interest rates increase, which can then in turn lower growth. These economic trends are currently playing out, with Deutsche Bank recently informing investors that they are expecting the worst recession in history to hit in late 2023.
The Age of Exponentials
At the beginning of Society 5.0, the imagination society is coming into play, where digital transformation and creativity from a diverse population will accelerate technological growth and adoption. Big data harvested by IoT and converted into a new type of intelligence by AI, will impact every corner of society and change our infrastructure for the better. People will see their lives become more comfortable and sustainable as they are provided with the products and services in real-time, as they need them. Investments will be focused on the future with any disruptive or innovative technology being lucrative.
The Meme Generation
As individuals using memes became viral it was then realized this pathway could lead to becoming an influencer which can be a lucrative job with some people becoming multi-millionaires from it. Meme investments using products or brands do a similar thing and are created to attract retail investors to invest in the company stocks and shares. This idea that a simple meme can create huge visibility for a brand is one that takes skill but can be worth the investment as it’s a quick way to get brands in front of a huge audience.
The DeFi economy
Historically we’ve used various different devices for different uses, think video cameras, cameras, CD players, and the radio. Now we have just one device – our phones to do everything. The same is happening with services, think taxi ranks that are now being replaced with Uber or Google replacing libraries. Everything is becoming streamlined and minimized. The same is happening with financial services where the decentralized system has fewer transaction points and middlemen. Ethereum could displace many traditional financial services and its native token Ether could compete as global money.
Stocks & Crypto Trading
Traditional currency is being taken away from the individual at source via taxes, bank charges, the rising costs of goods, and currency debasement. Investing in stocks and crypto can give you returns of around 5% to even 15% if you just have the strategies to invest wisely. When you then add money each month you may well see your profits grow via the power of compounding.
The Digital Decade
Everything that we do is being digitized and will encompass society 5.0.; in the digital decade, this will be apparent through a digital overlay on your day-to-day experience. The revenue from the virtual world could approach $400 Billion by 2025. Global gaming and AR and VR markets will drive this growth. Investing in these areas or companies that are implementing these technologies is a good idea as they are likely to see huge growth over the next few years.
The Rise of Robots
Automation will empower humans and increase productivity and wage growth. It has the potential to shift unpaid labour to paid labour and Cathie Wood, CEO of Ark Invest believes that automation will add 5% or $1.2 trillion to US GDP over the next 5 years. The metaverse and the gaming industry are driving the change of automation. AI and ML will help this change happen as we will see automation get smarter and take on volumes of information that would take humans much longer. We will see companies using AIs as their CEOs and they will be making better and smarter decisions.
Genius Generation
Entrepreneurship will become a vocation and will be taught in school and as a preferred option for employment by 2025. This is what Genius Group believes and is forecasting for the industry. Edtech will continue to improve people’s skills, wealth, and life chances with more education available to a wider demographic. The UN sustainable development goals will be met by people and companies who have invested in themselves and in the future.
Wholesale Investing
By teaming up with other like-minded groups or collaborators, investors can access a vast new area of wholesale investing. As with purchasing wholesale, the price is usually cheaper as you are buying in bulk, and you are able to find market opportunities that wouldn’t usually be open to an individual.
If you take the idea of retail or the stock market, you are buying at price, whereas when you team up with others there are new offers that are available to you. Using the power of the crowd you become an insider rather than an outsider.
Time for Impact
Buying property has always been a popular investment and given that the population is growing, and property won’t ever go to zero, banks are happy to lend. When growing a property portfolio, you can make infinite ROI by releasing money as the property increases in value, which leads to a tax-free cash-back to invest in the next property.