Matthew Fassnacht Reviews the Top Industries to Invest in for 2022
With the recent stock market highs, many investors have been looking to expand their investment portfolio and are looking for ways to get in on the action. If you want to be able to speculate what will happen in the future, you need to know which industries are expected to grow and which ones are expected to shrink. Investment Advisor, Matthew Fassnacht of Atlanta, Georgia, reviews five industries that are currently speculated to experience tremendous growth over the next few years.
Gold
The first investment industry is gold. Some investors have been shying away from gold since the price of gold is down year over year. However, many experts predict that there will be a large resurgence for gold and other precious metals such as silver and platinum over the next few years. This is due to a number of factors such as the increasing volatility of stock markets, geopolitical instability, and inflation.
Matthew Fassnacht notes that there are multiple ways you can invest in gold. Some of the ways you can invest in gold are through gold ETFs, gold futures, and physical gold. Gold is also traditionally a good option for investors who are looking for a safe haven asset.
Cryptocurrencies
The second investment industry that is expected to see huge growth in the next few years is cryptocurrency. Cryptocurrencies have been around for a while now, but only in the last few years have they started to become more mainstream. There are a number of reasons for this growth. Firstly, the global financial crisis of 2008 caused many people to lose faith in fiat currencies. Cryptocurrencies offer an alternative way to store value that is outside of the traditional banking system. Secondly, cryptocurrencies are digital and therefore have a very low transaction cost. This makes them ideal for payments and micro transactions.
Bitcoin has been the traditional cryptocurrency that most people are familiar with. However, Bitcoin’s dominance is decreasing and many experts predict it will lose its place as the dominant cryptocurrency in the future. Instead, Ethereum could rise to fill Bitcoin’s shoes.
A few ways you can invest in cryptocurrencies include through cryptocurrencies exchanges, cryptocurrency funds, and even Bitcoin mining.
Alternative Energy
The third investment industry that is expected to grow in the next few years is alternative energy. The main reason for this growth is that global temperatures are rising and governments are starting to take action to try and reduce greenhouse gas emissions. In order to meet these targets, many countries are investing in alternative energy sources such as solar and wind power.
There are multiple ways you can invest in alternative energy. Firstly, the easiest way to do this is through buying stocks from public companies that are involved with renewable energy production. Another way you can invest in alternative energy is through green bonds. Green bonds are like regular bonds, but the money raised from selling them goes towards investing in renewable energy infrastructure projects.
Emerging Markets
The fourth investment industry that is expected to see huge growth in the next few years is emerging markets. Matthew Fassnacht states that emerging market countries are defined as those with low per capita income and limited capital market access. These types of countries tend to be more volatile than developed economies, but they also offer higher returns on investments which makes them attractive for investors who want high-risk high-reward investments.
There are multiple ways you can invest in emerging markets. One of the simplest ways you can do this is through buying shares from companies listed on local stock exchanges who have a lot of their revenue tied to these countries’ economies. Another way to invest in an emerging market company is by investing directly into debt instruments issued by governments in these countries.
Artificial Intelligence
The final investment industry that is expected to see huge growth over the next few years is Artificial Intelligence (AI). AI has been around for a while now, but it is increasingly becoming more mainstream. There are multiple reasons why this happened including an increase in computing power and advancements in machine learning technology.
To invest in AI, you can invest in companies that are developing new technologies and applications for machine learning to help make processes like manufacturing and distribution more efficient. You can also directly invest in Artificial Intelligence funds or by investing through an ETF (exchange-traded fund).
Factors That Could Change The Outlook
Though these industries are currently speculated to do well in the next couple of years, Matthew Fassnacht reminds us that many factors could cause the outlook to change. Some examples are inflation rates, interest rates, economic conditions, political decisions, technological breakthroughs, and competitor activity.
Though these factors are outside of the control of forecasters, it is important for investors to keep them in mind when deciding where they want to invest their money over the next couple of years.
