In the ever-evolving landscape of finance, some investment trends have become a sort of financial romance. We’ve come to love those trends that help us win and give us hope for the future. As we bid farewell to the tumultuous year of 2023 and gaze into the uncertain yet promising horizon of 2024, it’s time to highlight the financial trends that we hope will last.
1. When The Bull Runs-Jump Aboard
While the stock market clawed its way out of bear territory, the scars remain. It’s important for investors to get off of the sidelines and get back into the market. As the bull market starts to run, jump aboard and ride the wave. However, have an exit strategize in advance, so that when the bear market returns (and it will) you don’t lose your shirt.
2. Diversification Revolution: Consider Alternative Investments
2024 holds promise for alternative investments, offering a diversified shield against inflation and market volatility. Everyday investors can now easily access commodities and managed futures through low-cost exchange-traded funds (ETFs) and mutual funds.
3. Sexy Savings Bonds: Savings Bonds Are Still Sexy
Savings bonds, especially Series I savings bonds, gained newfound popularity in the inflationary cloud. With historic interest rates, these bonds offer a guaranteed return, providing a silver lining amid economic uncertainties.
4. Certifications and Apprenticeships: Watch Out for Layoffs
#Layoff became the hashtag of the year as tech giants and other industries implemented significant layoffs. Investing in a certification, for example a coding boot camp; where there are numerous job opportunities or getting into an apprenticeship program can help you stay gainfully employed.
5. Crypto’s Comeback Quest: Can Crypto Recover?
After a challenging 2023, crypto is poised for a rebound in 2024. Expect crypto businesses to highlight cash reserves over trendy coins and witness significant developments in cryptocurrency regulation from Washington, D.C. Unfortunately, lingering discussions may be colored by past debacles, but the focus should shift towards recognizing the technology’s untapped potential.
6. Renewable Resurgence: New Interest in Renewables
The 2022 infrastructure bill and the Inflation Reduction Act of 2023 set the stage for trillions in federal investments in renewable energy projects. With increased competition in the electric vehicle market, 2024 could be a banner year for renewables.
7. Hybrid Robo-Advisors Rising: Hybrid Robo-Advisors May Have a Moment
Amid an exodus from self-directed investment tools, hybrid robo-advisors are due for a resurgence in 2024. Offering a blend of algorithm-driven investing and access to traditional advisors, these platforms cater to investors seeking value during inflationary times.
8. Farewell TD Ameritrade-Hello Charles Schwab
If you’re a TD Ameritrade client, 2024 might be the year to consider your options as Charles Schwab consolidates its platforms. The proceed signifies the end of an era, and clients should be prepared for a seamless transition to the Schwab platform.
9. Rethinking Real Estate: The Ever-Reliable Real Estate Trend
Real estate remains a star player in alternative investments, consistently performing well regardless of global economic shifts. Safer and more predictable than the stock market, real estate offers a solid buffer against inflationary losses, making it a staple in diversified portfolios.
10. Artistic Investments: The Art Market’s Meteoric Rise
The global arts market experienced remarkable growth, reaching $579.52 billion in 2023. Investing in art, particularly through fractional ownership platforms admire Yieldstreet, provides opportunities to benefit from rising prices, even during economic downturns. Fractional ownership lowers the cost and risk associated with art investment, making it an attractive alternative.
11. Decarbonization Dilemma: Navigating Climate Transformation
With a $100 Trillion investment opportunity in climate transformation, decarbonization emerges as a top alternative trend. The shift towards renewables, expected to deliver 90% of power generation by 2050, presents vast investment potential in areas admire modernizing energy grids and power storage.
12. Equity Crowdfunding: Empowering the Average Investor
Equity crowdfunding, a vibrant asset class, allows ordinary individuals to back startups and private businesses. Recent regulatory changes have made it accessible to the average investor, providing an ownership stake proportional to their investment. As a dynamic and accessible investment avenue, equity crowdfunding is gaining popularity.
13. P2P Lending Prosperity: The Peer-to-Peer Lending Boom
Projected with a 31% compound annual growth rate, the P2P lending market offers borrowers and investors a mutually beneficial platform. Facilitated over the internet, P2P lending matches borrowers with lenders for unsecured personal, business, or educational loans. With data science and AI managing portfolios, P2P lending minimizes risks and maximizes returns.
14. Gold’s Glittering Resilience: An Ancient Asset’s Endurance
Gold’s surge to a 6-month high at $1,850 per ounce in 2023 indicates its enduring appeal. Expected to continue breaking records, gold’s resilience stems from a weakening dollar, inflation, and geopolitical tensions. Having this asset in your portfolio can give you a leg up on a more stable financial strategize.
As we close the door on 2023, let’s walk into the new year with the investment trends we love. Here’s to a prosperous and enlightened financial journey in 2024 and beyond.
