Investment Trends to be Aware of in 2019
Can you accurately predict an investment trend?
To accurately predict an investment trend is virtually impossible. Why? Because the global economy is not based on reason or logic.
There are so many shifting variables, so many moving parts, such a high level of volatility, that you can never be sure about anything. What you can do though, is make an educated guess – evaluate, examine and analyze the current state of affairs and follow patterns to see where it leads you.
What follows is a brief breakdown of the industries, sectors and products that present investing opportunities in the new year. Let’s dive into it.
Yes, the stock market. Before going extraterrestrial on you we’ll go the safe route and give you conventional, tried and tested options you can count on. We know that many people don’t invest enough in the stock/bond markets due to its unpredictable nature but it’s all a matter of perspective. A diversified portfolio of stocks can prove to be the right way to go in 2019 with international stocks making a comeback.
Emerging markets the likes of China, India, and South Korea should be on your radar as the corresponding governments are introducing economic growth stimulants and incentives that could benefit you greatly.
After a strong 2018 for the dollar, there is a growing chance that the stock price of the greenback could weaken in 2019. Whether that’s due to softening geopolitical concerns, uncertainty about the U.S. budget deficit or concerns about President Donald Trump and the US-China trade war, an incapacitated dollar would essentially give even more value to international stocks.
Again, not a category that serves as big news to most of you but technology seems to be one of those long term investments that fit into any portfolio and business model. This category has its own set of sub-trends and we’ll pay attention to a few interesting ones. Let’s kick this off.
This has been on investment trend listicles for quite some time but with every year that goes by, it grows, matures and becomes more of a reality. 2019 will probably be the year AI will start making a noticeable entrance into everyday life in the form of service and products like managing your meetings or a simple microwave.
But that’s not where it stops. AI could infiltrate our lives in the form of “synthetic” media – being able to create images and videos that are indistinguishable to real life. Whether that’s advertising, blog writing or overall content creation, AI seems to be making an impact so investment in this vertical is a real option.
Ethics have usually been sacrificed at the altar of technological advancement as society and humanity cared about the end product much more than the means that were used to get there. That is not the case anymore. From the recent GDPR scandal to an overall market sentiment on more transparency, it seems like people care more and more about the inner workings of how business is conducted.
What this means, is that there will be a new tier, a new wave of tech startups that will look to balance out innovation and safety over client data. The term Environmental, Social and Governance (ESG) criteria will be something that will make its appearance even more in the business world.
From the humble beginnings of the Grameen Bank, to the online launch of Zopa in 2004, peer-to-peer lending has been making waves. It established a digital footprint and an online presence to match the best of financial services in the market.
The growing dissatisfaction with the brick and mortar banking system and high interest rates on traditional loans is nothing new. Combine that with the major advancement in the P2P space and you have an industry that’s developing at a pace that nobody would have predicted.
Only last year, Brazil joined the market with the country’s Central Bank authorizing peer-to-peer lending with India following the same footsteps. The appetite for P2P development does not stop here as Australia created incentives to allow eligible fintech businesses to test certain specified services for up to 12 months without an Australian financial services or credit licence.
The novelty of investing in PSPs is mirrored in the demographics of investors. As a recent survey suggest, investors aged between 18 and 34 are four times more likely to invest money into the peer-to-peer industry than their counterparts aged 55+. Millennials are clearly seeing the value and potential of P2P lending and look to capitalize on it.
Payment & Banking Solutions
Unless you’ve been living under a rock, you’re aware of there’s been a banking revolution under way for quite some time now. Whether it’s payment service providers like Sofort-Pay, Paymill and Naspay or consumer banking accounts like Revolut or Monzo, the traditional payments/banking sector is definitely “under attack”. In 2019, conglomerates like Apple, Google and Alipay are expected to add more and more mobile payment options with the entire market moving towards cashless solutions.
A minor subtrend that falls under this category is a move towards alternative credit payment methods. Payments by instalment and deferred payment by invoice are just some of the ways that payment service providers will look to incorporate in their products. The overall market sentiment seems to be moving towards a “buy now, pay later” state and companies will look to accommodate this with new features.
Investment opportunities come aplenty in 2019 with traditional options but also with markets and industries that are on the rise. The truth is that nobody really knows what this years holds for investors but these sectors are definitely interesting. It’s safe to say you should keep an eye on them as they have a lot of promise and hype following them.
Stay tuned and keep checking our blog for updates as we will revisit this subject matter half-way through the year to evaluate some of these predictions; look out for surprises and unexpected candidates.