Investing for the average person was fairly cut and dried for a long time. Blue-chip stocks and ETFs made it easy to plan some long-term investments that felt like sure things. Online stock traders with free consultants and low fees made putting together an investment portfolio a simple task for almost anyone, and those portfolios ran on auto-pilot and did just fine.
However, the world has changed immeasurably just since the beginning of the global pandemic. Worldwide marketplaces have changed, and investing trends are reflecting that. If you want to update your portfolio to reflect what is happening in the world today, here are some investment trends that you will not want to ignore.
Cryptocurrencies and Blockchain Technology
Arguably the biggest innovation to financial markets in the last decade, cryptocurrencies and the blockchain technologies that run them can no longer be ignored by the investment community. Cryptocurrencies like Bitcoin and Ethereum have become fairly stable and maybe a good place to begin dipping your toe into the world of digital currency.
If crypto coins still feel too unreliable or volatile for you to invest in, consider investing in the technology that runs them. Blockchain technology is stretching beyond simply swapping crypto on the ETH Exchange and moving into other industries, like traditional banking and retailers. Blockchain’s usefulness in the worldwide marketplace, both in new applications and in long-standing corporations, makes it an attractive way to begin investing in the wave of the future while limiting risk.
In the last five years, advances in technology and manufacturing have truly positioned space as the new frontier. Private funding has revitalized the space race, and the increased competition has accelerated man’s ability to fly to the stars.
Traditional investment groups are estimating that the global space industry could become a $1 trillion industry by 2040. Anticipated breakthroughs in related industries like defense, telecom and high-speed transportation could make that number even bigger. Identifying companies that will participate in or benefit from this space boom and adding them to your portfolio now could result in huge dividends in the future.
Environmental, Social and Governance (ESG) Investing
The global pandemic, and the undeniable evidence of global warming, seemed to revitalize our worldwide interest in protecting our planet and each other. Companies that prioritize environmental, social and governance issues, either by producing products and services or by adopting corporate policies and cultures, are booming in the marketplace. Global demand for sustainable investments hit record highs in 2021 and continues to rise.
Interestingly, ESG practices are not only paying lip service to public opinion. Research shows that companies with sold ESG policies and practices have higher three-year returns, are less likely to declare bankruptcy and are less volatile overall. Purpose-led corporations are proving to be very good investments indeed.
Taking the time to look at your investment portfolio and making sure your choices reflect these three trends, which are really just best practices for the future, will certainly pay off in long-term results.
Check out: 5 Top Blockchain Trends In 2021