Top 5 Investing Trends For 2023

2022 was not a great year for the stock market, especially with the rising inflation worldwide. Even though we have stepped into 2023 with uncertainty, financial experts predict there is hope for investors seeking positive returns in 2023.

Fortune’s Quarterly Investment Guide, released early this year, also shows that there’s some light at the end of the tunnel for the affected markets, but investors may have to reach it in unexpected ways.

As the investing landscape is changing faster than ever before, the best way to profit from potential investment opportunities is to stay updated on market trends. According to expert insights by investment and financial professionals, these are the top five trends that investors should watch out for in 2023.

1. Blockchain Popularity

With inflation taking hold worldwide, the dollar’s value is weakening, making digital assets gain popularity from mainstream institutions. E-wallets and lenders are segments that will benefit from this trend the most as customers will start to choose decentralized finances (DEFI) over traditional banking institutions. This increasing adoption of blockchain has already made some companies take bitcoins as payment for products and services.

2. Internet of Things  (IoT)

The outbreak of the covid pandemic stimulated the development and adoption of the Internet of Things (IoT). For those new to this concept, IoT covers four key elements, including sensors, networks, the cloud, and apps. It is what helps us use apps like TV remote apps and connected thermometers.

As we all know, the pandemic significantly influenced the healthcare industry, hyping the need for data safety, efficiency, and digitalization. At the same time, it compelled companies to switch to a culture of remote working. This is one of the main reasons why the IoT industry has grown over the past few years and gained massive demand from investors.

It is predicted that IoT will overcome cloud computing and next-generation security and will be worth $1.46 trillion by the end of 2027.

3. Real Estate

Since 2021, real estate investment trusts (REITs) have been the hottest trend. Although in 2022, this trend saw a slow dip because of the effects of the pandemic coupled with inflation, investment firms now expect them to go further up in 2023, particularly in the UAE.

According to law, REITs must distribute at least 90% of the taxable income in dividends. They work by investing in income-generating real estate assets, such as residential homes and apartments, hotels, healthcare organizations, retail stores, and data centers.

4. NFTs

NFT, also known as non-fungible tokens, is one of the most popular assets and is expected to grow from $3.0 billion in 2022 to $13.6 billion by 2027. NFTs allow anyone interested in this niche, especially artists, influencers, and other creators, to earn passive income by digitizing their creations. With the rise of the creator economy through 2022, this trend is likely to grow further in 2023.

For those unaware of NFTs, they refer to digitized assets that are verified and stored on the blockchain ledger. They own authenticity, meaning they can be opened only by one person and cannot be copied or duplicated. NFTs can be anything from JPEG images, tweets, and social media posts to famous art pieces in a digital version.

4. Metaverse

The increasing adoption of crypto and NFTs is making metaverse the latest trend in the investing world. It has gained noticeable interest from creators, gamers, and in fact, every person interested in the future of the tech world.

Metaverse has boosted the adoption of Altered Reality (AR), which, although it wasn’t a new tool, has now become an inevitable one for the future of this space. According to an analysis by Bloomberg Intelligence, the market size of AR will probably reach $800 billion by 2024, and Metaverse will dominate upcoming investment trends.  This growth forecast has, in turn, made investors and powerful global brands like the idea of improving this space even further this year.

Keeping up with the market trends and utilizing opportunities at the right time is key to a successful investment journey. However, it does require thorough research, risk analysis, and strategic decision-making with a focus on sustainable gains. This is where financial advisory companies or professionals can assist you with their expertise.

AIX Investment Group is one such pioneer financial advisory firm in the UAE, with over 30 years of cumulative experience in the industry. They break through the boundaries of traditional investing, adapt to market trends, and offer personalized solutions that put investors’ interests first.

Your dreams and financial goals require investments at the right time, and 2023 seems to be just promising. So start your journey toward financial freedom today.