Investment Trends for 2018
by Arina Smith Investing 12 December 2017
As 2017 comes to a close, investors need to look at the potential of different markets in 2018. The decisions you make at the beginning of next year will determine the health of your portfolio. Where should you put your money? 2017 has seen one of the longest-running bull markets in stock, but when can investors expect it to end? Advances in technology and changing economic trends have a played and will continue to play a significant role in the investment sector. Here are some insights on what the landscape will look like in 2018.
Technology startups have proven to be lucrative ventures for investors for the past several years, and that pattern will hold in 2018. The technology market is full of innovative products that are set to revolutionize various sectors. Blockchain technology is one to watch. As the bitcoin value spiked to a historic high of $17,000 (£12,615),nve istors are eyeing cryptocurrencies with renewed interest. Block-chain technology is what makes it possible to transact in digital currencies like Ethereum, Litecoin, and Ripple. The full capabilities of block-chain technology may not be known yet, but it is expected to lead investment trends in the coming year.
Google and Apple have striven to bring augmented reality to the mainstream, a move that will impact technology investments. Apple made it’s OS capable of running AR applications, and Google released ARCore, an AR kit for developers, which has contributed to the popularity of augmented reality.
When analyzing upcoming investment trends, market players have to consider the generation that will hold the biggest influence, and at present, those are the millennials. In a few years, millennials will be the active generation that has consumers, employees, and investors. Millennials differ from previous generations in many aspects, including spending habits, investment goals, and wealth allocation. The tech-savvy nature of this generation will have some of the greatest influences on investments going forward. Millennials are used to automated services, which is one element that has fueled the growth of the robo advisor. Generation Y is more socially conscious compared to Baby Boomers and Generation X. This trait will make social, governance and environmental products more attractive to millennials.
Despite the geopolitical shocks throughout 2017, the financial market has managed to remain robust. Volatility was subdued in the past year by strong economic growth, which encouraged excessive risk-taking. Sustained growth in European markets has seen the Eurozone real estate enjoy the resulting advantages. As rental and capital growth persists, the industry offers various investment opportunities. Experts are taking an optimistic approach towards the performance of financial markets in 2018. Bond yields are expected to maintain an upward trend, but equities will do better. Industrial, healthcare, financials, and telecoms are some of the equities that investors should bet on in 2018. However, the anticipated strategic changes in the regulation of the financial services market make it hard to see a clear path forward.
Regardless of where you intend to invest, understand how the changes will affect the markets and your risk tolerance. Be selective in your asset choices and only bet what you are willing to lose. Take the time to find high-quality instruments that rate worth your money.