We saw the worst of Covid-19 in 2021.
Inflation in the US reached levels not heard of in the last 40 years. China, appeared to tolerate a slower rate of growth to ensure a more resilient economy.
Needless to say, the pandemic brought with it enormous turbulence. Having said that, the year ended on a fairly good note for the markets. Investors expect the same trend to continue in 2022.
Top 5 Investing Trends For 2022
If you are an investor, you would want to see beyond the usual noise. This includes keeping abreast of emerging investment trends that will pay off over many years.
Take a look at the top 5 investing trends that should be on your watch list in 2022:
1. Blockchain Leads the Way As A Top 2022 Investment Trend
As equity prices continue to be volatile, investors are looking at alternative assets to invest in.
The blockchain space is rebounding in 2022 with cryptocurrencies like Tether, BNB, USD and Solana flooding the market. Experts predict that there will be renewed investor interest in this segment. Moreover, with consumers walking away from conventional banking, digital wallets powered by blockchain technology are expected to emerge as the biggest winners this year.
The influence of blockchain technology has far surpassed its role in decentralized, digital ledgers. Blockchain technology is being used in key sectors like healthcare, banking, supply chain management, retail and manufacturing.
Most importantly, Strategic partnerships between companies like AMD and Blockchain Gaming Alliance are spearheading innovations in new blockchain-powered gaming platforms. Companies like ConsenSys, Halo Holdings, and W3bcloud have also joined hands with AMD to develop cloud computing infrastructure based on the blockchain.
With the increasing usage of blockchain technology across sectors, the investment potential in this sector in 2022 seems extremely lucrative and promising.
2. Allocations in Sustainable Investing will continue to rise in 2022
This, in turn, means renewed investor interest in ESG with retailers showing a strong inclination to sustainable investing. Over the last two years, 77% of insurers, pension funds, wealth funds, and foundations have increased their ESG portfolios and the trend is expected to continue in 2022 and beyond.
Moreover, the recent conflict between Russia and Ukraine has shown that the world needs to lose its dependency on fossil fuels and make way for renewable sources of energy like solar power and wind energy.
This puts the renewables energy sector on the brink of growth. Moreover, ESG’s past investment performance has rekindled belief in investors where 83% of global investors surveyed say that ESG portfolios will show more resilience with the potential to generate higher risk-adjusted returns.
So, if you are considering diversifying your investment portfolio, 2022 can be the year to venture into sustainable investing that can potentially give you long-term gains.
3. Metaverse stocks may boom in 2022
Several experts have hyped Metaverse as the biggest idea in tech. It is predicted to be the future of the internet (Web 3.0). Many believe that it has resulted in a seismic shift in the digital arena.
This upcoming technology has already drawn in billions of dollars of investment from behemoths of the industry like Microsoft, Walt Disney, Apple and Nike. This has pegged the market to grow to a whopping US$800bn by 2024.
Metaverse shares saw a bulk sell-off over the last few months, which brought stock trading down 63% to 73% from its recent highs. This provides a major upside for long term investors in 2022 where it creates an opportunity for them to buy top players at big discounts.
Metaverse may be at an infant stage now. However, if trends are to be believed, then, it may be the perfect time for investors to put their foot in the Metaverse movement and be part of this technological leap forward in 2022.
4. Real Estate Investments in 2022 Will Have Steady Growth
Real estate investment trusts (REITs) was one of the hottest investment trends in 2021. Economic conditions favoured growth that helped real estate securities do well.
It is expected that the economic conditions will improve further in 2022, which will result in an increase in GDP, higher incomes, and boost employment rates that help the market control inflation.
Irrespective of where inflation goes, REITs may just be the answer for prospective investors looking to diversify their portfolios with inflation protection stocks. This is because REITs have performed well during moderate inflation in terms of market returns and operating fundamentals.
With the proven resilience of this asset class, investors will want to hold on to or invest further in REIT companies that have strong balance sheets and operating performance in 2022.
5. The Popularity of NFTs Is Expected Bubble Up in 2022
2022 may be the year of NFTs (non-fungible tokens) that has now exploded into the mainstream consciousness of prospective investors. The reason is that investors are now more open to investing in new technologies.
Even though it’s not an asset class per se, NFTs have generated over US$10.7bn in investments until the third quarter of the fiscal year 2021. Experts predict that the global NFT market at its current growth rate is estimated to skyrocket to US$80bn by 2025.
The segment is attracting the attention of art devotees and memorabilia collectors who are proactively investing millions of dollars in these unique digital creations. With celebrities, sports stars and corporations getting into the game, it goes without saying that the popularity of this yet to be asset class will continue to soar unabated in 2022.
This means that it may just be the right time to invest in an underlying asset class before it booms out of control.
When it comes to alternative asset class options to choose from outside of conventional investments like equities and debt, it can be a tough call to make.
Trends can be an indicator of where to allocate your funds. However, it is vital that you make use of cutting-edge investment research technologies and real-time industry indicators that will ensure that your investment delivers long term gains.
*Disclaimer: The information mentioned in this article is just for information purposes only. Readers/investors/traders should not consider it a recommendation to buy/sell/hold. Research & Ranking does not facilitate investing in US stocks, nor do we endorse investing in cryptocurrencies or any other digital assets
Read more: How Long-term investing helps create life-changing wealth – TOI.