Many will remember 2022 as one of the most trying years for investors. The Dow Jones (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) all slipped into bearish territory.
In addition to ongoing supply chain issues from the COVID-19 pandemic, the deepening recession and war in Ukraine have combined to disrupt markets.
Markets can wobble, but those who invest in the right place can survive volatility. Using TipRanks’ powerful suite of investment research tools helps investors succeed in all market conditions.
Riding hot trends for portfolio gains in the new year
As 2023 approaches, many investors are looking for the best place to invest their money. If the brutal market of 2022 damaged your portfolio, you may be counting on 2023 to make up for losses and more.
One of the main tenets of successful long-term investing is to stick to your plan. However, goals and circumstances change, requiring periodic review of the portfolio. If your portfolio needs some review or you just want to expand it with additional investments, we’ve put together a list of top investment trends for 2023.
The values of the energy transition
If there is a business or household that is not already involved in the transition to renewable energy and energy efficient systems, they will soon join the party. Switching energy is great for the environment and can also save utility costs.
The Inflation Reduction Act accelerated the energy transition. It offers a tax credit and other incentives to encourage the adoption of electric vehicles and renewable energy solutions.
Let’s take a look at the hot investment trends in the field of energy transition:
Electric vehicles (EV)
You can’t doubt that electric vehicles are the future. At one time, electric vehicles were primarily associated with Tesla (TSLA), but now almost every major automaker has entered the EV business. The global electric vehicle market is expected to reach approximately $823 billion by 2030, up from $163 billion in 2020.
With government support through subsidies and regulations, sales of electric vehicles are growing rapidly. Given that electric vehicles currently represent only a tiny fraction of vehicles in use globally, the growth opportunities for electric vehicle manufacturers remain enormous.
While EV makers like Tesla may be garnering the most attention, EV charging providers have an equally bright future. If you’re wondering what’s the best EV stock to buy right now, TipRank’s EV stock filter can help.
Renewable energy storage
As part of the energy transition, solar and wind power systems have become popular renewable energy options. The problem is that solar and wind power are intermittent.
These energy resources can become more reliable if the excess electricity they generate is stored for later use. As a result, many households and businesses are investing in energy storage systems. This has created some interesting investment opportunities. You can invest in companies that manufacture energy storage products or those that supply materials for the manufacture of these storage products.
Additionally, lithium is a central material in the production of batteries that power electric cars and store excess wind and solar energy. Therefore, it is worth exposure to lithium stocks. You can use TipRanks’ investment research service to find the best energy storage stocks to buy now.
Web 3.0 – Metaverse Actions
The internet economy has developed in a way that has created unease for some people. For example, many experts are concerned about how Apple (AAPL), Amazon (AMZN), Google (GOOGL) and meta-platforms (META) have become powerful guardians of the internet.
To level the playing field online, some pundits are betting on Web 3.0 – a distributed Internet that no single entity controls. The Web 3.0 concept builds on the idea of decentralization pioneered by cryptocurrencies such as Bitcoin (BTC).
In the push towards Web 3.0, the metaverse has become a hot investment opportunity.
The Metaverse is sold as a virtual world where people can live, work, and play. For example, you could have a digital replica of your house built in the metaverse.
In the Metaverse, virtual lands and other commodities are offered as non-fungible tokens, or NFTs. A growing number of businesses, celebrities, and even public entities are boosting their presence in the metaverse with NFTs.
While some brands have embraced the metaverse as an additional way to showcase their products, others have leveraged the concept for tasks such as virtual staff training.
The metaverse economic opportunity could reach $13 trillion by 2030. Mark Zuckerberg’s Meta is one of the companies trying to lead the metaverse infrastructure industry. NVIDIA (NVDA) has also joined the metaverse infrastructure building effort.
The metaverse concept promises to benefit many businesses. For example, semiconductor companies like Qualcomm (COMQ), Intel (INTC), and Nvidia could see an increase in demand for chips to power metaverse systems.
Additionally, running metaverse systems requires a strong internet connection. As a result, broadband providers like AT&T (J), Verizon (Vz)and Comcast (CMCSA) could see a surge in demand for their hookup services.
Buy now, pay later
It would be better if your paycheck allowed you to buy whatever you wanted. The reality is that paychecks don’t go far enough for most people, so they choose to acquire certain items on credit.
For a mortgage or car loan, you can contact the bank. However, for a retail purchase worth a few thousand dollars that you cannot raise up front, you can turn to an alternative credit solution. This is where a buy now, pay later (BNPL) service can help.
BNPL providers let you buy an item you can’t afford now and pay for it in installments over time. With salaries not keeping up with the cost of living, an increasing number of people are relying on BNPL loans to acquire expensive retail items.
The global BNPL market is on track to reach a staggering $4 trillion by 2030, up from just $90 billion in 2020. Which BNPL stocks to buy now? To block (SQ), To affirm (AFRM), PayPal (PYPL), and Apple stocks can give you exposure to the booming buy now, pay later industry. You can use TipRanks to research these stocks to determine which ones best suit your tastes.
Music Streaming Stocks
If you’ve heard that music is the universal human language, now you can extend that concept to big business. It also turns out that good music has no age. What may change is how people access music; the best way to enjoy music now is to stream it online.
The size of the global music streaming market was estimated to be just under $30 billion in 2021. Growing at an annual rate of around 15%, the music streaming market is on track to exceed $100 billion by here 2030.
You don’t want to miss this huge investment opportunity. If you’re looking for the best music streaming stocks to buy right now, Spotify (PLACE), Warner Music Group (WMG), and Apple are worth considering. Other streaming music stocks you might want to check out are Pandora’s parent SiriusXM Radio (SIRI), His bone (HIS BONE), and Amazon.
Top Investing Trends for 2023 – Summary
Investing in areas with long-term growth potential can help you earn profits and minimize your portfolio’s downside risk. Therefore, the top investment trends for 2023 outlined above can be an important guide to help you discover the best places to invest now. Energy transition stocks, Metaverse stocks, BNPL stocks and music stocks could all boost your portfolio in 2023.
Yes, long-term investing in value stocks is Warren Buffett’s preferred investment strategy. At the same time, while you shouldn’t worry about short-term market fluctuations as a long-term investor, short-term volatility can provide an opportunity to pick up quality stocks at a lower cost. TipRanks provides the tools and information that can help you invest successfully for years to come.