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7 Investment Trends to Watch Out For In 2023

A year ago, everybody was prepared for the booming economic recovery, which was driven by fewer COVID-19 restrictions and vaccines. Some even believe that the pandemic is over and that soon everything will get back on track, including the global economy. However, new types of COVID, known as Delta and Omicron, arrived. 2022 is going to end soon, but the pandemic remains stable, generating one mixed signal after another while also greatly affecting the global economic recovery.

However, the stock market experienced a party that lasted all year long. Reports show that the total return on the S&P 500 in 2021 was over 27%. Even though experts believe that the crypto market will soon experience a fall, observers are wondering how long the stability will last. 

Regardless of the market’s challenges, investors still have money, and people see the opportunity in this turbulence. In addition, technologies and the wider use of digital assets opened up new ways for investors to get passive income and generate high revenue.

Below we will list 7 best trends to watch out for in 2023.

1. Blockchain Popularity Increases 

With the dollar’s value weakening and inflation arising, digital assets are gaining popularity from mainstream institutions. E-wallets and lenders are the groups of people who benefit best as customers choose decentralised finances (DEFI) over traditional banking institutions. With the increased adoption of blockchain, some companies have even started to take bitcoin as payment for products. 

2. Internet of Things 

COVID-19 also stimulated the development and higher adoption of the Internet of Things (IoT). Thanks to IoT, users can now use various apps like TV remote apps and connected thermometers. IoT covers four key elements, including sensors, networks, the cloud, and apps.

As we all know, COVID-19 greatly influenced the healthcare industry, increasing the need for data safety, efficiency, and digitalisation. It also forced companies to switch to remote work. This is why the IoT industry has greatly developed during the last few years and gained immense interest from investors. The report shows that IoT will even overcome cloud computing and next-generation security. In addition, the market will reach $1.46 trillion by the end of 2027.

3. Real Estate 

In 2021 real estate investment trust (REITs) was the hottest trend. We also expect this trend to go further in upcoming years, although in 2022, this trend seemed to slow down a little bit.

REITs work by investing in income-generating real estate assets, such as residential homes and apartments, hotels, healthcare organisations, retail stores, as well as data centres. This is a great investment idea since REITs have to distribute at least 90% of the taxable income in dividends according to the law.

Even though the pandemic reduced the importance of property, especially restaurants and office properties, the future of this trend is positive as economies move on and seem to get back on track. 

4. Use of Data Monitoring Apps

Today’s world is highly digital. This is why most investors prefer to use specialised software to monitor data and streamline their passive income. Depending on the goal and the assets used, investors can easily find the best software for their asset management. For example, is one of the preferred options for accessing the DeFi ecosystem and tracking your portfolio with ease and efficiency.

5. NFTs 

If you somehow work with finances or crypto, you probably know what NFT means. NFT, also known as non-fungible tokens, is one of the most popular assets. The global NFT market is soaring and is expected to grow from $3.0 billion in 2022 to $13.6 billion by 2027. Thanks to the rise of the creator economy, NFTs allow anyone interested in this market, such as artists, influencers, and other creators, to earn passive income by digitising their creations. 

To be more specific, NFTs refer to digitised assets that are verified and stored on the blockchain ledger. They also have authenticity meaning they can be opened by one person and can’t be copied. NFTs can be anything from JPEG images, tweets, and social media posts to famous art pieces in a digital version.

6. Renewables 

Renewable energies will become essential in the future, especially during fuel shortages and the rising cost of fossil fuels. Renewables like solar, wind, and hydropower have shown great potential in capturing a larger market share, although the dependence on them may disappear in upcoming years. 

Growing energy consumption with urgent climate issues such as droughts, floods, and main storms make renewables the key mainstream energy sources. That is why renewables have become an excellent long-term investing trend, where most experts believe in growth in the renewable energy sector.

7. Metaverse 

Metaverse is the last but definitely not the least trend in the investing world. With the increased adoption of crypto and NFTs, Metaverse gains interest from investors, creators, gamers and even every person interested in the future tech world. 

Metaverse also boosted the adoption of Altered Reality (AR), which wasn’t a new tool but became a key one for the future of this space. Investors and well-known brands like the idea of improving this space since the market size will probably reach $800 billion by 2024, according to an analysis by Bloomberg Intelligence. 

In addition, Facebook CEO Mark Zuckerberg announced that the Metaverse will be the platform’s key focus from now on. Market giants like Fastly, Nvidia, Roblox, Shopify, and Roundhill Ball Metaverse ETF will also provide stiff competition. That is why Metaverse is going to dominate upcoming investment trends.

Final Thoughts

Since 2019, the investment market and worldwide economy have experienced many issues. However, with fewer restrictions, investors also came back to the industry. The market also develops new trends that seem to improve the overall situation in this sector while also allowing investors to get better results in return on their investments.

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