Many guides claim that 2023 is not the year to invest; however, this is a faulty statement by default. Even if the value of one asset plummets, it’s impossible for every asset to suffer the same fate.
By their very nature, some assets are juxtaposed. For instance, when people lose trust in institutions, they buy more commodities. In other words, when one asset loses value, the other gains it.
Moreover, you’re supposed to buy when the price is low, so wouldn’t a bearish market be great for this scenario?
For all those who are determined not to skip a year, here are the top five investment trends to watch out for.
1. Diversify portfolio with alternative investments
If all your money is in one asset type, you’re left at the mercy of the market. Needless to say, the market can be either generous or merciless but never indifferent. In other words, putting all the money in a single investment type is no short of a gamble.
You see, asset types are usually tied together. Inflation usually hits all fiat currencies simultaneously, while during a market crash, almost all stocks and bonds start losing value. This is where diversifying a portfolio is particularly handy. By splitting your assets across different types, you’re making the total value of your investments more resilient to any change.
For instance, while you want stocks, options, and bonds, you also want to keep 10% of your assets in precious metals (like gold, silver, platinum, or palladium).
Other than stocks, fiat, and commodities, there are so many different asset types that you should consider.
Art can be a great investment opportunity. If you find a rare artwork, buying it and keeping it in a vault is a great idea. The same goes for any other type of collectibles. One example is militaria (military artifacts, items, and uniforms).
You could also borrow your money via a peer-to-peer lending platform. This way, you’ve invested and created a passive revenue stream.
Anything of value can be an investment; some are even known to invest in luxury handbags or rare cars. Like any other type of investment, the key is knowing something or two about these handbags before committing. Not all of them have the same resale value.
2. Crypto investments are stronger than they appear
While many quickly dismiss crypto, crypto presales are in high demand even in 2023. This means that so many people are still looking for “the next Bitcoin,” further showing that this industry has a future.
Just think of all the new and exciting trends in this field.
With so many different crypto assets, it’s clear that this is an industry in expansion. These are just some crypto types, utility tokens, and much more. Since these differences are significant, you can quickly diversify your crypto portfolio.
3. The bearish market seems here to stay
While some hope that the bear market could end in 2023, this is yet to be seen. Sure, the inflation is slowing down, and even if we are heading toward a recession, most financial experts suggest it won’t be a major one.
At the same time, people are warning of layoffs, the housing market is through the roof, and many in the automotive industry are warning about the used car bubble. In other words, there’s a disaster in the making, and most components are here.
Generally speaking, a bearish market is characterized by the following:
While the most common advice you can give someone looking to join the market is to sell high and buy low, many people are wary of the latter part of this tip. After all, the price is never low without a reason. If the price keeps lowering and shows no signs of slowing down, there’s no guarantee that this trend will turn around.
Still, if you plan to buy stocks in the future, now might be the time. People are selling, and they’re desperate to get out. This means that those who practice dollar cost averaging trading strategy might have a great opportunity for a cheap buy-in. This is especially great since dollar cost averaging exists to navigate volatile markets. As we’ve already stated, this perfectly describes the current situation.
4. Savings bonds are an interesting idea
Most investment idea lists usually lead with the riskiest ideas (those that come with the highest potential reward). However, what about low-risk investments? Previously, we’ve discussed diversifying your portfolio. While this is generally a great idea, it doesn’t mean just throwing your money into the wind and hoping some will stick to something solid.
When making your portfolio, you must fully invest in risk management. Assign a percentage of how much you’re willing to invest in high-risk, how much goes to medium-risk, and what goes to low-risk investments.
Now, it’s hard to top savings bonds when it comes to low-risk investments.
First of all, they’re backed by the government. You can’t get This type of stability with any other asset (save perhaps precious metals).
These bonds are also incredibly liquid. If you ever need this money, you can reliably sell them at any given point and get your money as quickly as possible.
Now, you may get access to various tax advantages in some countries. It’s nothing unusual for government bonds to be exempt from state taxes.
Overall, it’s an idea worth considering even in 2023.
5. Renewable energy companies are hotter than ever
Investing in renewable energy or anything connected to it is a great idea; however, in 2023, it’s a brilliant idea. With the war on the European continent raging on and one of the belligerents being one of the biggest fuel exporters in the world, the planet is coming to realize the dangers of relying on fossil fuels.
Moreover, some massive improvements in solar and wind power fields cannot go unnoticed. Batteries are far more sophisticated than ever, and solar shingles are almost competitive (per square foot) with solar panels. In other words, things are looking up for renewable energy.
Previously, we’ve talked about cryptocurrencies, and even in this field, there’s a trend of tying utility coins to companies and trends in green industries. While the world faces other issues, the planet might come out on top.
You see, there are no alternatives. Sure, with the latest breakthroughs in physics and laser technology, we’re closer than ever to nuclear fusion. Until this technology reaches its peak, it’s unlikely that the world will accept nuclear power as the optimal solution.
So, at the moment, renewable energy seems like a bottleneck toward a sustainable future. Like any other bottleneck, you want to position yourself near the entrance in time.
With the right risk management in mind and the right investments in sight, 2023 could be your year
With the right ideas, there’s no such thing as a bad year. The key is approaching the market critically and examining all these trends closely. Once you figure out where the wind blows, you’ll know exactly how to set your sails.
