February 7, 2024

Investment Trends to Watch Out For in 2024

As 2024 unfolds, investors are searching for ways to boost their portfolios. Focusing on themes with long-term potential such as Gen Z growth or longevities benefits of obesity drugs may provide solutions.

Fixed income investors remain optimistic about future interest rate cuts as yields on cash and high-yield savings accounts increase, providing stiff competition to stocks.

1. Technology

As geopolitical tensions, slow global growth, and uncertainty over interest rate levels continue to impact investors, many are searching for alternative investments such as private equity to diversify their portfolios and enhance returns over traditional investments. One such alternative investment option that has emerged recently is private equity – comprising leveraged buyouts and venture capital which offers higher returns than traditional investments.

As large US technology stocks that dominate index weightings – known as the “Magnificent Seven”: Apple, Amazon, Google-Owner Alphabet, Facebook-Owner Meta, Nvidia and Tesla) continue to dominate returns this year, professional investor attention is shifting away from them towards companies offering digital transformation solutions and robust technological infrastructure; companies offering strong e-commerce and fintech offerings are also drawing increased interest, while renewable energy and storage solutions may gain ground due to environmental concerns.

2. Artificial Intelligence

AI revolution continues, from revolutionizing cancer treatments to creating tools to detect hotspots of deforestation in Amazon rainforest. AI plays an essential role in many major companies such as Google Search, Alphabet’s Waymo self-driving cars.

As we approach 2024, investors should look towards AI companies with generative technologies that enable businesses to automate processes and increase operational efficiencies – which may boost earnings and valuations for businesses in this space. Cybersecurity has also emerged as an attractive investment theme as businesses look for ways to protect themselves against threats to data and technology infrastructure; this could drive up demand and valuations in this sector.

3. Robotics

From our ocean depths to outer space, today’s robots are performing feats that were only dreamt of fifty years ago in science fiction novels. Robotics has emerged as an investment trend to watch out for in 2024.

From data automation to intelligent systems, robotics has an array of uses in many industries. Law enforcement and military operations alike rely heavily on robotics for search-and-rescue missions after natural disasters as well as mine detection on battlefields.

At a time when yields are high and valuations appear reasonable, 2018 could be an opportune moment to expand your fixed-income allocation. But you should remain mindful of various risks and monetary policy dynamics, so we continue to recommend maintaining a modest overweight in core bonds that yield more than Treasury bills.

4. Healthcare

Experts advise investors looking to diversify their portfolios in 2024 to pay attention to alternative investments such as Freeport app which enables individuals to invest in pieces of art; or crowdfunded projects such as creating a drone to protect rainforests.

Astute investors should also look at Asia and emerging markets for investment opportunities, particularly China with its slowing economy, India with impressive growth potential, US stocks with their high valuations whose sensitivity to recession fears are too great for comfort – however a soft landing scenario might benefit bond prices while interest rates, which have reached record highs this year, might decline accordingly.

5. Energy

As nations and companies race to meet emission reduction goals, an energy transition is underway that provides potential investment opportunities across refiners to chemical producers.

Gen Zers are eager to gain more knowledge of investing and are making it part of their lifestyle, using YouTube and TikTok for resources. This could result in increased retail trading or copy trading – an optimistic sign for the sector.

Growth stocks such as Google and Apple, which occupy large index weightings, have driven stock market gains this year in the US. Analysts are targeting mid- and small-cap stocks that don’t get as much attention; specifically those operating within sectors like banks or communications services; they also see potential in companies with diverse revenue streams.

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