Today we will take a look at the most popular investment strategies in the world for 2023, we will see what attracted the most interest from investors and what investments are likely to remain relevant in early 2024.
Investors realize that smart investing leads to financial independence and eliminates the obligation to go to a job they don’t like, freeing up personal time for family, business and the things that are truly important to them. Therefore, the question of what to do with money will always be relevant, given that life does not stand still and brings changes, and with them come new investment opportunities.
Over the past few years there have been many events. The world economy has gone through a difficult time and despite the fact that we can now observe its gradual recovery and upward growth, it is too early to talk about any fundamental changes.
Investors need to be more careful in their choices, as clear growth is mostly stable now only in real estate, banking and IT sectors. We can see these trends on the charts of stock market shares of the largest companies, whose activities and products are related to the above-mentioned directions. These are the most “confident” sectors of the economy, whose companies demonstrate their stability in the market. Everything that does not fit these types of activities is experiencing certain changes and sometimes even tangible declines.
For example, the dividend policy of many organizations has changed over the past year, which pushes investors to reconsider the localization of their funds in the investment portfolio and to search for alternative opportunities, and also the situation with currencies has become clearer – euros and dollars are no longer profitable to keep in cash. Let’s talk a bit more about financial markets.
Currencies are a traditional way of investing, but due to global instability, a large number of currencies now do not protect the investor’s portfolio, but rather have a negative impact on it. This instrument and its correlation with others in your set is better to reconsider so that it is complementary, for diversification, but not the primary one. Both the dollar, the euro and other currencies have been highly susceptible to exchange rate volatility and inflation in recent years. However, today you can consider buying other currencies (again in small quantities), for example, the Indian rupee or UAE dirhams.
Given the digitalization of everything in the world, the No. 1 preferred tool for investing in 2023 is cryptocurrencies. In fact, this trend has been going on for several years, because cryptocurrencies have a low entry limit for investment, the markets are open 24 hours a day, and there are certain bonuses when using them, for example: money can be anywhere in the world in seconds and without overpaying for bank fees. Their correlation with stock markets is tracking, and the longer this instrument exists, the clearer it becomes that the movement of cryptocurrency on the charts lends itself to technical analysis. Nevertheless, with all the popularity of this instrument, we would like to highlight two recommendations before adding them to your investment portfolio: first, if you decide to buy cryptocurrency – choose those that have the largest capitalization (usually the first 3-5 coins in the list). Do not buy cheap, little-known coins, because they now appear a lot due to the popularity of the trend, but only time will answer the question of their viability. And the second point: remember that even the most reliable coin can depreciate at any moment, cryptocurrency is cryptocurrency and it does not have its fundamental value.
And what has been preserving its value for centuries and is also on the list of trends for 2023 is precious metals. Gold bars, the most conservative way of investing, which protects savings from inflation and is one of the safest options for capital preservation. In the past, you could only invest in gold in a very beautiful but old fashioned way: you physically buy a gold bar from a bank, which you then carefully store from any scratches or damages in a special album or a safe deposit box where it will stay and keep your savings. But now there are other ways to invest in gold, more advanced – you can invest in gold mining companies, open a metal account, invest in exchange gold and so on. There are no complications with the subsequent storage of bullion, and the investment performs its capital protection functions in the same way.
The next trend among investors in 2023 was real estate. And both residential and commercial. We often talk in our articles about the benefits of this investment instrument, so today we will very briefly remind about its three most attractive components for investors: real estate protects capital from depreciation, has high liquidity and has been continuously rising in price in the European Union, in particular, we mean the Czech Republic, in the last few years. This is signaled not only by the current real estate listings on the websites of real estate agencies, but also by the data freely available on the portal ČSU (Czech Statistics Office).
Investments in shares of companies that develop technologies and products with a positive impact on the environment are also gaining momentum. In general, we talk about green energy. More and more investors are interested in the future of the planet, which signals a growing human awareness and hope for a better future for our children. A very worthy trend that we want to support and develop. Solar panels, electric cars, electric bikes and other products and technologies that contribute to the preservation of the environment are gaining popularity, are profitable and have impressive prospects for profitability in the near future.
Another trend that remains relevant is automation, IT products and robots. People are actively investing in progressive companies in these areas, artificial intelligence attracts interest even from those who are far from programming. In general, this is logical; global capital moves where there are innovations, growth opportunities and prospects.
With a high degree of probability, we can predict that the above-mentioned sectors of the economy will be attractive for investment in 2024, and most of them will remain relevant for the next few years.