Investment Trends That You Need To Know

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In the difficult economic times that we find ourselves, smart investors must be aware of important investment trends. By understanding these trends, you can find terrific investment opportunities that other investors may miss.

This article details five exciting investment trends that you need to know.

Robo Advisors

One of the most interesting investment trends of late has been the increasing use of robo advisors. Robo advisors allow ordinary investors to have access to the kind of quality investment advice that the wealthy have long taken advantage of, at a very low price.

Using the type of advanced technology that professional traders have relied upon for years, robo advisors intelligently match you to great investments such as exchange-traded funds (ETFs) that will meet your investment goals. They can also monitor and adapt your investments to make sure that they are continuing to align with your goals.

COVID-19-Related Investing

The outbreak of coronavirus sent the stock market into a dramatic downward spiral, but the pandemic has not hurt all industries. Some have even benefited from the virus. This includes retail giants such as Walmart and Amazon, who have been hiring hundreds of thousands of workers. Other industries that have benefited include:

  • call centers
  • transportation and logistics companies
  • companies that enable remote working

These types of companies will likely perform much better than other types in the immediate future, and they can be great investments for those with the foresight to invest in them despite all the volatility in the stock market.

Environmental, Social, and Governance (ESG) Investing

Another type of investing that has benefited from the coronavirus outbreak is ESG investing, which is also known as socially responsible investing. Because of all the damage that the virus has done to human life, many investors have been recently looking to focus their investments toward companies and industries that are helping better human existence.

ESG investments have been outpacing other forms of investment during the pandemic and this trend will likely continue even after the pandemic ends. This is especially true because of the existence of funds that are dedicated to ESG and that make this type of investment easy even if you are not an expert in the stock market.

5G-Related Investing

With the upcoming rollout of 5G cellular technology across the world, many companies (and their investors) stand to benefit greatly from this. Chief among these companies are the large U.S. wireless networks, such as:

  • AT&T
  • Verizon
  • T-Mobile

Benefiting from the rollout of 5G as well will be large global wireless networks. These include:

  • China Mobile
  • KDDI
  • Globe Telecom

You should also not overlook the companies that will supply the equipment and the components that will make 5G possible. Companies that could benefit from this include:

  • Ciena Corporation
  • Cisco Systems
  • NXP Semiconductors

In addition to buying individual stocks, you can further buy ETFs that are focused on 5G.

Digital Advertising

Digital advertising is yet another industry that has benefited indirectly from the coronavirus outbreak. This is because, with so many brick-and-mortar stores closed because of the pandemic, people often have no choice but to buy things online. Though the trend toward digital advertising had been happening long before the virus struck. Last year, digital advertising in the United States overtook traditional forms of ads such as print and television, and this will only expand in the near future and beyond.

You can take advantage of this trend by investing in the leading digital advertising platforms, such as Facebook, Google and Amazon, and also by investing in smaller companies that make both software and platforms in this area.

Summary

Just because we are in an economic downturn does not mean that there are not profitable investment opportunities available. By taking advantage of these prevailing investment trends, you can succeed in reaching your investment goals.