3 Promising Investment Trends Right Now (Q4 2022)

Even though the stock market is dominated by the top six companies that drive the entire stock market, figuring out where to put your money for the best results is more complicated than just sticking with safe choices like Apple, Microsoft, or Alphabet.

You must have your finger on the pulse of the stock market, understand the current investment trends, and always be on the lookout for promising industries and companies to put your money in for maximum returns.

And the good news is that despite the turbulent year in the global economy, there are still plenty of opportunities savvy investors can use to grow their portfolios and protect their key assets.

Let’s explore some of the most popular and impactful investment trends happening right now and throughout the last quarter of 2022.

The Psychedelic Industry Can Pay Off Big

For a long time, psychedelic stocks were looked at with a lot of suspicions. For one thing, most psychedelics are still illegal and are having a lot of trouble gaining approval, even for limited medical use. At the same time, the research on the effectiveness of psychedelics in medicine and mental illness is still ongoing, which means that it will take some time until the industry gains traction and more mainstream appeal.

However, the fact that there are still obstacles to overcome puts more daring psychedelic investors in an amazing position to attain huge returns over the long term. Sure, investing now comes with high risks and may result in losses, but the upside over the longer period could be incredible, even hard to quantify. 

Some investors, such as Berti Investments, Camden Partners, Able Partners, and a few others, are actively seeking out investment opportunities in the psychedelic industry, providing support and funding to promising psychedelic projects that could revolutionize the industry in the future.

Protection Against Inflation

Inflation has been a key buzzword in this year’s investing world, and for good reason. As of August 2022, the current annual inflation rate in the United States is 8.3%, and that has had a huge impact on how investors perceive opportunities and what measures they take to protect themselves.

A couple of excellent ways to protect yourself from inflation are using Treasury Inflation-Protected Securities, called TIPS, as well as Series I bonds. These U.S. government-issued securities are designed to reflect the inflation changes and rise or decrease together with it. In the case of Series I bonds, they have a variable interest rate that is set according to the current inflation rate. This means that you don’t have to worry about your assets depreciating because of inflation and can offset the volatility of the market in a secure way.

If you want an alternative to hedge against inflation, you can also consider investing in stable stocks, which tend to maintain their value even with inflation considered. Since profit margins tend to increase and the increased costs are typically transferred to the customers, most of the leading companies can be a reliable way to ensure that your portfolio doesn’t decrease in value over time.

Artificial Intelligence is Booming

Talk of the artificial intelligence market taking off has been going on for many years. But it seems that finally, machine learning and AI are truly living up to the hype, as the industry is seeing tremendous growth and is likely to see a compound annual growth rate (CAGR) of 38.1% until 2030

With major companies like Apple, Tesla, Alphabet, and others heavily invested in AI and AI-related products, the industry finally has the necessary financial backing and viable real-life applications that will propel it forward in the upcoming decade and beyond.

The good news for investors is that today, there are still plenty of opportunities to get in on public companies that are pioneering the way for the AI solutions of the future. And savvy investors that do their research and get behind promising projects could see themselves being one of the biggest winners not just in the upcoming quarter but in the next few years as well.

At the same time, it’s likely that you already have at least some exposure to AI technology in your portfolio through investments in some of the bigger companies in the United States. 

Bottom Line

Even though 2022 is a volatile year with many uncertainties, the opportunities for investing are still there for the savvy investor. In fact, while there are risks, you can offset them using inflation-protected securities while taking on more risk in promising industries such as psychedelics.

At the same time, other industries like AI are already taking off, so if you want to get more direct exposure in the market, now is the time to act.

Economicanalysis   PersonalFinance   Investing