Is 2022 the year when inflation finally slows down or will it just keep going up? Will the stock market party continue for another year? Will crypto continue giving high returns to investors, or is the crypto bubble finally going to burst? Here are the key investment trends to look out for in 2022!
Environmental, Social, and Governance – ESG Investing
Investments in ESG industries reached a record high of $120 billion last year in 2021. This amount was more than double of what people invested into the sustainable energy world in 2020. Plus, these investments are expected to keep growing this year.
The world is trying hard to move on from the crude oil, natural gas, and coal industries to more sustainable, environmentally friendly options to reduce our carbon footprint. The younger generation is gaining wealth and investing a higher percentage of their money into sustainable energy solutions and socially responsible and ethical companies. Even investors look to improve or reduce their investments’ social and environmental impacts.
All of this means more money is flowing into industries and businesses focused on sustainable or renewable energy, ethical supply chain solutions, fair-paying companies, and sexually and racially diverse companies. Whether you invest in renewable energy or data privacy and security, the trend of investing in ESG will likely keep growing!
As ESG investments continue to grow, so do investments in industries connected to it. The electric vehicle industry is ready to take advantage of these investments as people across the globe try to move on from gas-powered, traditional internal combustion engine vehicles to reduce their carbon emissions.
Governments now impose new regulations on non-electric vehicles to reach their clean energy goals. Consumers are also moving and converting to electric vehicles to be as carbon neutral as possible. These are all good reasons to invest in these industries. According to the International Energy Agency, there was a record-breaking growth of new electric vehicle registrations last year. These trends are expected to give high returns to investors in 2022.
Supply Chain Solutions
The Covid-19 pandemic showed how fragile the world’s global supply chain really is. Worldwide shortages of staff due to the pandemic, shipping containers piling up at ports, deliveries arriving weeks late, all are signs of issues with supply chains globally. Even ethical issues surrounding supply chain management with underpaid labor and poor working conditions are all calling for a shift in supply chain solutions.
The world’s industries are transforming into digital solutions, and artificial intelligence is going to be a crucial part of it. Almost every industry uses and implements AI to either improve or completely transform its processes. Even if artificial intelligence might still seem like an industry in its first stages, this is the best time to invest in these industries.
Industries are using Artificial Intelligence to replace or ease the work done by humans in many industries. AI is also implemented to improve the quality of life in everyday work and recreational activities. Experts expect the AI industry to keep growing continuously in the upcoming years. Established companies like Nvidia and Intel are also focusing on more AI-related hardware and software.
Real estate has been a constant in the investing world for many years now. House prices continue to grow, especially in the last few years of the Covid-19 pandemic. They are likely to continue growing in 2022.
The percentage of people renting homes keeps rising, and the number has been steadily rising over the last decade. Work from home also bought forward an impact on the housing and real estate industry, making it a unique time to invest.