Top 6 global investment trends to bet on in 2023
For most of 2022, global markets were battered by inflationary pressures, geopolitical turmoil and the threat of a potential recession. So, what will happen in 2023? If you want to rebalance your portfolio or expand it, you should check out the top investing trends for 2023.
Investing in the right places can change the world in a tumultuous year, as many investors are discovering in the brutal 2022 market.
The Dow Jones, S&P 500 and Nasdaq 100 are in the bearish zone. The market situation can be volatile, but investing in the right places can survive volatility. Let us take a look at the hot global investment trends.
Energy transition stock
If businesses or households are not already involved in the transition to renewable energy and energy-efficient systems, they will soon be. The energy transition is good for the environment and saves operating costs. Anti-inflation laws drive the energy transition. It offers tax credits and other incentives to encourage the adoption of electric vehicles and renewable energy solutions.
There is no doubt that electric vehicles are the future. Electric vehicles used to be primarily associated with Tesla, but now nearly every major automaker is in the EV business. The global electric vehicle market is expected to reach about $823 billion by 2030, up from $163 billion in 2020.
Electric vehicle sales are overgrowing, supported by governments through subsidies and regulations. Given that EVs currently represent only a tiny percentage of vehicles in use globally, the growth opportunities for EV manufacturers remain enormous.
While electric carmakers like Tesla may get the most attention, the future looks equally bright for suppliers of electric vehicle charging stations.
Renewable energy storage
Solar energy and wind turbines have become popular renewable energy options in the energy transition. The problem is that solar and wind power is intermittent.
These energy sources become more reliable if the excess electricity they generate is stored for later use. As a result, many homes and businesses are investing in energy storage systems. It creates exciting investment opportunities. You can invest in companies that make energy storage products or supply the materials to make them.
Metaverse stocks - Web3
The way the internet economy is developing has some people uneasy. For example, many experts worry about how companies like Apple, Amazon, Google and Meta Platforms are powerful internet gatekeepers.
With the advancement of Web 3.0, the metaverse has become a popular investment opportunity. The Metaverse is sold as a virtual world where people live, work and play. Broadband providers like AT&T, Verizon and Comcast may see increased demand for their connectivity services.
Can crypto recover?
According to a Bankrate survey, Bitcoin and other cryptocurrencies are the least popular long-term investment options for investors. Only 6 percent think cryptocurrencies will be the best long-term investment over the next 10 years. Cryptocurrencies have been highly volatile since their inception, with many initially surging higher before pulling back.
While there are many reasons why cryptocurrencies are successful, the truth is that they are an unproven speculative asset. Like gold, they have no intrinsic value, so you depend on another investor paying more for the coin than you to make your trade profitable. It is sometimes called the “Great Fool Theory” of investing because you need a bigger fool to make investing successful.
Investment in sports
The way sports teams and leagues function has changed to become more professional as the sports industry continues to expand and some of the most well-known teams and athletes in the world become more international. But as a type of economic activity, it also creates work and pays wages on par with those of other, more conventional sectors. Sport has developed into a significant economic force worldwide as a kind of mass entertainment, contributing 1.5 to 2 percent of the global gross domestic product, 2 percent of the European GDP, and more than 3 percent of the GDP of Spain.
Investing in areas of proven long-term growth potential can help you generate profits and minimize downside risk to your portfolio. Therefore, the critical investment trends for 2023 discussed above can serve as an essential guide to help you discover the best places to invest right now.
Energy transition, metaverse and sports-related stocks could strengthen your portfolio in 2023.
When it comes to making future investments, investors have many choices. So, prioritize learning about the long-term performance of each asset type you consider for investment.
Given how unpredictable the forthcoming plan is, investors need to be more confident. For most customers, companies and investors, 2023 looks like a more challenging year. The war in Ukraine will continue, with severe consequences for Europe, geopolitics and oil. These many interrelated issues have rarely existed around the globe, but we anticipate the view in 2024.
• Nasser Alshareef is head of Business Administration Department and Faculty Vice Dean for Quality and Development at Majmaah University.