In 2021, investors actively invested in growing shares of technology, pharmaceutical, and industrial companies. Also, traders did not ignore the commodity and cryptocurrency markets. But with the year 2022 already in, investors are mulling where to pump in their money. We have selected several promising assets that might possibly show growth in quotations in the next decade:
Gold quotes of the world‘s gold mining companies at the beginning of October 2021 are far from historical highs. This situation is most likely associated with the interest of investors in other assets. For example, against the backdrop of lower interest rates and other measures to restore the economy after the pandemic, shares of many companies are growing in value. Investors tend to buy rising securities and ignore digital currencies, many of which are now experiencing a trend. Over time, such excitement in the cryptocurrency and stock markets can lead to a revaluation of assets, which will entail a correction.
Research has long shown that marijuana has some beneficial medicinal properties. This was the reason for the permission of many states to produce marijuana for medicinal purposes in 2022, which allowed entrepreneurs to organise large companies that produce and sell the substance, and investors – to legally do their cannabis investing in this market. For example, Canopy Growth is a leading manufacturer of medical marijuana. The company’s capitalisation reaches $5 billion. Constellation Brands, a major alcoholic beverage producer, invested $245 million in the company, acquiring a 9.9 percent stake. Canopy Growth has strong international ambitions and plans to consolidate its presence in Germany, Australia, Brazil, Denmark, Chile, Jamaica, Spain, and Canada.
The socially responsible investment industry
In 2021, many investors have actively invested in stocks of companies whose policies are in line with their social, corporate, and environmental principles. Thus, S&P Global Market Intelligence conducted a study in which twenty-six funds from the sphere of responsible investment (ESG) were examined. Nineteen of them performed better than the S&P 500 during the coronavirus pandemic (2020-2021). Based on these data, it can be assumed that the ESG sector will not lose popularity in 2022.
The dramatic changes taking place in the healthcare sector provide unprecedented opportunities for private equity companies and commercial and healthcare companies, whose shares are listed on stock exchanges. As the number of private investors, venture capitalists, and investment companies and funds grow, the competition for promising investment targets intensifies. This is especially true for the emergence of devices for remote patient monitoring. In addition, the shares of pharmaceutical companies producing vaccines have been growing. Consultant traders have experience in healthcare investment, including leadership positions, and provide valuable guidance on managing major change, transformation, and risk in 2022.
Biomedical and Biotechnology
As the need for innovative solutions increases, companies are continuing their research and development in order to provide patients with better care. As a result of these efforts, the medical device market has grown tremendously over recent years; it currently stands at $456 billion worldwide (2020) generating industry revenue worth nearly 40 percent higher than biopharmaceuticals ($374 billion). This growth is projected by 2025 when healthcare expenditures will reach $612 billion.
In recent months, the crypto market has been experiencing increased volatility. Against the background of attempts by the price of bitcoin to recover after falling to $30,000, the exchange rate of many other digital currencies also looks unstable. Some analysts assumed the possibility of a drop in Bitcoin quotes to $10-20,000. However, Benjamin Cowen, in his video review, claims that Bitcoin is ready to return to an upward trend. In October 2021, the Bitcoin rate surpassed the $50,000 mark. A few cryptanalysts predicted the growth of bitcoin to $500,000 in 2022.
During a period of active economic recovery, even experienced investors and analysts can make mistakes in their forecasts for individual financial instruments. Traders, therefore, recommend diversifying portfolios, including both risky and defensive assets.
This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources.