New Investment Trends: What to Watch For

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Regardless of one's investment objectives, whether short-term, long-term, bearish or bullish, change in the stock market is constant. The current investment landscape is rapidly evolving with new investment trends emerging. These range from passive investing to automated digital investing platforms and even cryptocurrency investments, just to name a few.

Investors of all experience levels have also begun to leverage various types of analysis and data to make more informed decisions when buying and selling stocks. These decisions can sometimes be nerve-racking, especially during periods of high volatility. But these new technology tools and services can alleviate some of the angst, serving as trusted partner, and making it easier for investors to not only participate stock market, but also achieve investment objectives and strategies such as portfolio diversification.

Nevertheless, when talking about these new investment tools and trends, it's not a one-size-fit-all situation. Which ones to adopt and which ones to avoid may require extensive due diligence, or if you’re into passive investments, it may require you to do nothing at all. In other words, there is a trend for anyone who’s interested. Let's discuss a few investment trends that individuals are now using to put their money to work.

Cryptocurrency Investing

One the most-polarizing trends that has dominated the headlines while creating an entirely new asset class has been the emergence of cryptocurrencies like Bitcoin, Ethereum, and Litecoin. These coins were born from blockchain technology, which is the foundation of cryptocurrency. Cryptocurrency exchanges such a Coinbase (COIN) not only provide investors with access to these coins, but in some cases are revolutionizing the way consumers transact for goods and services around the world.

As such, many investors have made crypto a central part of their portfolios. But that comes with a lot of risk. While crypto investing have minted many new millionaires, billions of dollars have also evaporated amid high-profile bankruptcies from the likes of FTX, crypto firm BlockFi, and crypto lender Celsius Networks. In other words, “investor beware" should apply here.

A Resurgence in Tech

Although it’s not a new trend, investment in the technology sector is also on an upward trajectory. This is in part due to the massive decline tech stocks have suffered over the past year due to rising inflation and interest rates. In 2022 the tech-heavy Nasdaq Composite Index suffered the worst of the declines, losing 34% of its value. The FAANG stocks for example, lost an average of 47% of their value in 2022, referring to formerly Facebook, now Meta Platforms (META), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Google parent Alphabet (GOOG , GOOGL).

When factoring that Tesla (TSLA) has also suffered 70% declines, 2022 was a nightmare for Big Tech, which collectively lost close to $4 trillion in market value. In 2023, the trend has become favorable, particularly with Tesla which has surged 41% year to date. Tech stocks will remain highly sought after investments. From hardware and software to artificial intelligence and automation, the potential for growth within the technology sector continues to rise.

Renewable and Clean Energy

Whether it’s called “socially responsible investing," “socially conscious investing," "green investing," or “ethical investing,” some investors are looking at ways to not only make money, but also betting on companies whose values align with theirs. There are no shortage of companies that promote long-term positive impacts on the planet, society, and future. Across many industries, companies are looking to reduce their carbon emission, create less waste and increase recycling.

But knowing which ones to invest in can be difficult. This is where the Global Clean energy ETF (ICLN) can make this decision a bit easier. These are funds that invest in renewable energy companies like, Plug Power (PLUG), SunRun (RUN) and First Solar (FSLR). If you're wondering whether these companies have lasting power? Trillions of federal investment dollars are now available for renewable energy projects, thanks to the landmark $1.2 trillion infrastructure bill of 2021 and the Inflation Reduction Act of 2022.

Sustainable Agriculture

Another investment trend gaining momentum is investing in sustainable agriculture. For example, investments in water resource management allow investors to make money while addressing global climate change objectives. Not only is this trend a boost for the environment but it also provides mouth-watering yields for investors.

Alternative Investments

In addition to the above trends, alternative investments have become more popular. This is no surprise, given the turbulent markets of recent years and the desire of many investors to diversify their portfolios. These investments include venture capital and private equity funds, as well as real estate, debt instruments, and commodities.

Bottom Line

As investors become more sophisticated, they flock to these non-traditional assets in hopes of achieving greater returns. As the investment landscape continues to evolve, investors should stay informed and explore the possibilities. It goes without saying, with more ways to invest, there is potential for breathtaking returns, but also the potential for massive losses as we have seen in crypto. Doing your due diligence is the best way to stay informed of what’s best for your objectives. And it doesn't hurt to seek professional advice before committing your capital.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Richard Saintvilus

After having spent 20 years in the IT industry serving in various roles from system administration to network engineer, Richard Saintvilus became a finance writer, covering the investor's view on the premise that everyone deserves a level playing field. His background as an engineer with strong analytical skills helps him provide actionable insights to investors. Saintvilus is a Warren Buffett disciple who bases his investment decisions on the quality of a company's management, its growth prospects, return on equity and other metrics, including price-to-earnings ratios. He employs conservative strategies to increase capital, while keeping a watchful eye on macro-economic events to mitigate downside risk. Saintvilus' work has been featured on CNBC, Yahoo! Finance, MSN Money, Forbes, Motley Fool and numerous other outlets. You can follow him on Twitter at @Richard_STv.

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