Many will remember 2022 as one of the most punishing years for investors. The Dow Jones (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) all slipped into bear market territory.
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Apart from the lingering supply chain snarls from the COVID-19 pandemic, soaring recession and the war in Ukraine combined to roil markets.
Markets may wobble, but those who invest in the right place can outlive the volatility. Using TipRanks’ powerful suite of tools for investment research helps investors succeed in any market condition.
Riding Hot Trends for Portfolio Gains in the New Year
Heading into 2023, many investors are looking for the best place to invest their money. If the brutal market in 2022 damaged your portfolio, you may be counting on 2023 to make up for the losses and then some.
One of the top principles for successful long-term investing is sticking to your plan. However, goals and circumstances change, requiring a periodic portfolio review. If your portfolio is up for a review, or you simply want to expand it with additional investments, we’ve put together a list of the top investment trends for 2023.
Energy Transition stocks
If there is a business or household out there that isn’t already involved in the shift to renewable energy and energy-efficient systems, they will soon join the party. The energy shift is great for the environment and can also generate utility cost-savings.
The Inflation Reduction Act has boosted the energy transition. It provides tax credit and other incentives to encourage the adoption of EVs and renewable energy solutions.
Let’s take a look at the hot investment trends in the energy transition space:
Electric vehicles (EVs)
You can’t doubt that electric vehicles are the future. At one time, EVs were mainly associated with Tesla (TSLA), but now almost every major automaker has entered the EV business. The global EV market is forecast to reach about $823 billion by 2030, from $163 billion in 2020.
With government support through subsidies and regulations, EV sales are increasing rapidly. Considering that EVs currently account for only a tiny fraction of vehicles in use globally, the growth opportunity for EV makers remains enormous.
While EV makers like Tesla may be getting the most attention, EV charging providers have an equally bright future. If you’re wondering which is the best EV stock to buy now, TipRank’s EV stock screener can help you.
Renewable Energy Storage
In the energy transition, solar and wind power systems have emerged as popular renewable energy options. The problem is that solar and wind energy are intermittent.
These energy resources can become more reliable if the excess power they generate is stored for later use. As a result, many households and businesses are investing in energy storage systems. This has created exciting investment opportunities. You can invest in companies that make energy storage products or those that supply materials for the manufacturing those storage products.
Additionally, lithium is a central material in the production of batteries that power electric cars and store excess energy from wind and solar. Therefore, it is worth getting exposure to lithium stocks. You can use TipRanks’ investment research service to find the best energy storage stocks to buy now.
Web 3.0 – Metaverse Stocks
The internet economy has developed in a manner that has created unease for some people. For example, many pundits are concerned about how the likes of Apple (AAPL), Amazon (AMZN), Google (GOOGL), and Meta Platforms (META) have become powerful internet gatekeepers.
To level the online playing field, some experts are rooting for Web 3.0 – a distributed internet that no particular entity controls. The Web 3.0 concept builds on the decentralization idea pioneered by cryptocurrencies such as Bitcoin (BTC).
In the push to Web 3.0, the metaverse has emerged as a hot investment opportunity.
The metaverse is sold as a virtual world where people can live, work, and play. For example, you could have a digital replica of your home built in the metaverse.
In the metaverse, the virtual plots of land and other products are offered as non-fungible tokens, or NFTs. An increasing number of businesses, celebrities, and even public entities are building their presence in the metaverse with NFTs.
While some brands have adopted the metaverse as an additional avenue to showcase their products, others have leveraged the concept for tasks such as virtual staff training.
The metaverse economic opportunity could be as huge as $13 trillion by 2030. Mark Zuckerberg’s Meta is one of the companies trying to lead the metaverse infrastructure business. Nvidia (NVDA) has also joined the metaverse infrastructure building effort.
The metaverse concept promises to benefit many businesses. For example, semiconductor companies like Qualcomm (QCOM), Intel (INTC), and Nvidia could see an increase in demand for chips to power the metaverse systems.
Moreover, running metaverse systems requires a strong internet connection. As a result, broadband providers such as AT&T (T), Verizon (VZ), and Comcast (CMCSA) could see a sharp increase in demand for their connection services.
Buy Now, Pay Later Stocks
It would be best if your paycheck could allow you to buy everything you wanted. The reality is that paychecks don’t go far enough for most people, so they choose to acquire some items on credit.
For a mortgage or auto loan, you can go to the bank. However, for a retail purchase worth a few thousand dollars you can’t raise upfront, you may want to turn to an alternative credit solution. This is where a buy now, pay later (BNPL) service can help you.
BNPL providers allow you to purchase an item you can’t afford now and pay for it in installments over time. With wages not keeping up with the cost of living, an increasing number of people are relying on BNPL loans to acquire expensive retail items.
The global BNPL market is on track to reach a staggering $4 trillion by 2030, from only $90 billion in 2020. What are the BNPL stocks to buy now? Block (SQ), Affirm (AFRM), PayPal (PYPL), and Apple shares can give you exposure to the booming buy now, pay later industry. You can use TipRanks to research these stocks to see which best suit your taste.
Music Streaming Stocks
If you have heard that music is the universal language of man, you can now extend that concept to big business. It also turns out that good music is ageless. What can change is how people access the music; the favored way to enjoy music now is by streaming it online.
The global music streaming market size was estimated at just under $30 billion in 2021. Growing at an annual rate of about 15%, the music streaming market is on track to surpass $100 billion by 2030.
You don’t want to miss this massive investment opportunity. If you’re looking for the best music streaming stocks to buy now, Spotify (SPOT), Warner Music Group (WMG), and Apple are worth considering. The other music streaming stocks you may want to look at are Pandora parent SiriusXM Radio (SIRI), Sonos (SONOS), and Amazon.
Top Investment Trends for 2023 – Summary
Investing in areas with evidence of long-term growth potential can help you achieve profit and minimize the downside risk to your portfolio. As a result, the top investment trends for 2023 discussed above can be an important guide to help you discover the best places to invest now. Energy transition stocks, Metaverse stocks, BNPL stocks, and music stocks could all boost your portfolio in 2023.
Yes, long-term investing in value stocks is Warren Buffett’s favorite investment strategy. At the same time, while you shouldn’t worry about short-term market fluctuations as a long-term investor, short-term volatility can provide an opportunity to pick up quality stock cheaply. TipRanks provides the tools and insights that can help you invest successfully, for years to come.
