Looking to diversify your investment portfolio for 2022? With a flurry of emerging trends and some exciting movement on the market as we speak, there’s plenty to keep your eye on – and as we head towards the end of 2021 and prepare to dive head-long into a new year, there’s no time like the present to get planning.
While we know that the stocks and shares market can vary wildly from day to day – and even minute to minute – and trades are best decided when you’re ready to pounce, market analysis makes it possible to spot the trends as they develop. And, according to the experts, there are several areas you should be focusing your attention on if you’re eager to grow your wealth in the new year.
From energy to precious metals, crypto to tech, these are the market segments to watch.
The world is undergoing a fundamental shift away from hydrocarbons and fossil fuels towards green energy, with the recent COP26 marking a renewed global commitment to achieving carbon neutrality over the coming years.
SSE, for example, has earmarked millions of pounds to aid the process of bulking up its renewable energy offerings, aiming to triple output by 2030 – and has plans to build the world’s largest offshore wind farm in order to bring this to fruition. With other companies making similar pledges, there are some greener and more sustainable investment opportunities on the horizon, and 2022 might just be their year.
Nevertheless, fossil fuels such as oil and natural gas remain in high demand, and have a huge infrastructure advantage over cleaner fuel sources, which means that there is still some money to be made in investing in producers. Platforms like Oil Profit (https://oil-profits.com) are continuing to report a steady increase in the number of users – but risk factors like cyclicality and volatility mean that it is still a riskier choice.
Technology is continuing to transform the way we live and work, and there appear to be some exciting developments afoot in 2022. As we continue to work from home, shop online and have meals delivered to our doors, the dramatic shift into the digital age we’ve seen in light of the pandemic is set to continue, and will shape the trends we can expect to see over the coming year.
According to a recent survey conducted by Alvarez Marsal in conjunction with Retail Economics, around 25 per cent of the population intend to make permanent changes to the way they shop, and the British Council for Offices has reported that a large proportion also plan to make working from home – at least for part of the week – a perpetual part of life, too.
With this in mind, there are a number of digital investment trends to keep your eye on, with cyber and artificial intelligence companies expected to see substantial growth. And, with the demand for convenience at an all-time high, the likes of meal kit delivery service Gousto and online used-car dealer, which allows you to make purchases entirely online and have them delivered straight to your door, are examples of some of the newer business models that we can expect to see flourish in 2022. Both of the afore-mentioned have recently surpassed the $1 billion mark in value, and are prime examples of the kinds of companies set to go the distance.
Perhaps the most obvious inclusion here is cryptocurrency – a digital asset and decentralised currency that has been gaining momentum over recent years and is already beginning to transform the way we spend.
Originally created to remove banks and other middlemen from transactions and thus, the fees they charge, examples like Bitcoin and Ethereum have already reached some impressive new highs this year, and despite historic market volatility, appear to be on an upward trajectory – with some substantial gains to be made for those who can hold their nerve.
In fact, Bitcoin has reportedly returned 525 per cent for its investors over the past year alone, and in its early days, made a number of overnight millionaires in its early adopters when value surged early on.
In 2022, up-and-coming ‘parody’ cryptocurrencies like Dogecoin and Shibu-inu are worth watching, but Bitcoin, Ethereum and Binance Coin are expected to remain the front-runners.
Precious metals – particularly gold – have always been seen as a safe investment that is resilient in the face of inflation. Times of uncertainty – such as those we have been living in for the past eighteen months as the pandemic continues – tend to see gold investments soar, and over the 2020-21 tax year, we saw a particular spike in the number of young investors buying into it.
The Treasury-owned Royal Mint’s new digital platform has been somewhat accredited for the surge, making the process easier and more accessible than ever. But while gold might be considered a ‘safe’ way to invest your money, it certainly isn’t the most lucrative, and can leave something to be desired when it comes to growth.
To turn the situation to your advantage, you might want to consider investing in the companies that mine gold by purchasing shares, rather than this precious metal itself. You can also buy gold bullion, or invest in a fund that tracks the price of it.
Disclaimer: Investing money carries risk, do so at your own risk and we advise people to never invest more money than they can afford to lose and to seek professional advice before doing so.