Top 5 Investment trends
As investors we are always looking at the highest value of our assets, long-term investment strategy has shown that brings a better return as will not depend on the daily ups and downs.This investment strategy goes along with an adequate selection of financial assets to the ones we think will perform the best in the future, and although there is no way to know which ones will have the best performance, there are key factors such as the progress in technology, demographics and socials changes are having a big influence on the market´s performance.
- Technology: Currently most valuable companies are the ones in the tech industry or the ones that are embracing the disruptive change of digital transformation.New initiatives like cryptocurrencies are taking the spotlight in the financial market and making a real influence for new investors, the rise of Robo-Advisors and artificial intelligence are becoming one of the most important focus on investment management taking control on the day to day transactions an increasing value on investment proposal considering factors such as the investor profile,behaviour, and preferences, not to mention the impact that technology is having on retail, advertising and other industries where “innovations” is becoming the new normal.
- Emerging market: The Asia-Pacific dynamic economy is showing a high developing rate;alsoLatin America also is showing a rapid rate on its growth coming from a price increase on commodities and a reduction on their inflation rate, becoming an interesting option to investors that are more open to risk.
- Alternative investment: Private equity, Real estate, and infrastructure are expected to have a rising trend, being the last two(Real estate and infrastructure) the ones expected to have a faster expansion rate, on the latest report by PricewaterhouseCoopers “Asset and wealth management revolution: Embracing Exponential change”.We can see modest but steady growth over the past few years, according to it; a potentially higher growth is expected in the long term, this is making investors focus on this type of assets.
- 4. Millennials, making a social impact: Millennials are having an impact on the course of business and their overall strategy, as they will become the most influential generation (nearly 50% of the world´s population). Millennials have a strong mindset on social change, switching their investment decisions to a more “socially responsible” portfolio, as a result of this a group of clean energy and sustainable companies are emerging and redefining the market focus.
- Silver economy: Trends due to ageing, point to an older average age in the population, shifting the focus to seniors needs, including goods, health-care services, etc. This is leading to changes in company´s innovation strategies to one that is more “senior-oriented”, opening up new opportunities and niches for these companies that are taking the lead in this area.
As with all investing, your capital is at risk.