As any financial planner will tell you, investment trends aren't right for everyone. Investment strategies shouldn't change year to year, and they shouldn't be based on what someone with millions of dollars to invest is doing if you only have a limited budget and need to be cautious about risks.
However, with that being said, there are some interesting trends or movements in the investment sector that are going to be effective options to consider for the vast majority of individuals. To take a closer look at the changes and the opportunities, let's consider a few that are well worth watching.
- Diversification in energy sectors – With low oil prices continuing without any sign of change, more companies and countries are looking toward new and alternative energy sources. Some of these countries, including companies in the United States, have innovative and highly impressive technologies in everything from wind turbines to solar power. Look to these alternative energy companies for early investment in groundbreaking technologies that are going to be in demand.
- Sustainable products – As with the downturn in fossil fuels and the uptick in alternative energy, look for more companies to come to the forefront in the market with sustainable products. Often, these are long-term investments and not as effective as short-term investments, but they show a lot of ongoing potential for growth.
- Local investing – Instead of investing in the multinationals and the traditional types of companies, more and more people are looking to invest on a local basis. This is particularly true with millennials who are also some of the biggest drivers in investing in sustainable products.
- European investments – The other option that is recommended for this upcoming year is to invest in the European stocks. They are anticipated to have a higher growth rate than Asian, UK or USA stocks, which makes them appealing.
- Technology – It is no surprise that technology investments are an ongoing trend in investing. This doesn’t necessarily mean new tech companies as existing companies are producing products at lower costs, boosting profitability.
Working carefully with a financial planner will allow you to choose the stocks and investment opportunities that work with your portfolio and your investment strategy.