Investment Trends to Watch in the Near Future

The last year was one of the worst years for investors. Quite a lot of opportunities were lost, and most of the asset classes were anything but alluring and profitable.

This year is looking much brighter, bringing plenty of investment possibilities for all those who know exactly where to look for them. Here are the top investment trends for 2019, and the years ahead.

Interest Rates in the US Will Increase Even More

The global economy is not at its highest, but the US Federal Reserve is still making steps for increasing the interest rates in the US. President Trump raised concerns over the interest rates increase recently, saying that the Federal Reserve “made a big mistake: they raised interest rates far too fast.”

He urged the Federal Reserve to cut rates so that the economy could grow. However, his trade war with China could create an even bigger uncertainty, as more businesses could refrain from investment.

If the Fed raises interest rates more in 2019, the US dollar could go even higher. However, investors from the UAE will continue to earn money from overseas investments and remittances.

Emerging Markets Might Spring Back

Emerging markets didn’t see many opportunities for investment and growth in 2018, but that could change entirely this year. The emerging markets that experienced the worst falls were Argentina, China, South Africa, Venezuela, and Turkey, but most of them may be able to breathe freely once again.

China has been especially falling sharply because of the trade war with the US, so a lot depends on those tensions, and how the whole situation will play out. The country has the second-largest economy in the world, so it could bring plenty of investment opportunities if it strikes a good deal with the US.

Investors should be very cautious this year. The best option for them might be investing in low-cost ETFs (Exchange-Traded Funds). According to Vijay Valecha, chief market analyst at Century Financial Brokers in Dubai, ETFs can yield generous dividend income. 

The Increasing Volatility on the Stock Markets

 No one has ever predicted that low-interest rates and quantitative easing would last as long as they have. However, “the party is coming to an end,” as Edward Bonham Carter put it.

The vice chairman at Jupiter Asset Management talked several months ago about the fact that 2019 won’t be to everyone’s taste. The monetary policy that made the stock market party go on for a decade is about to “leave global markets with a bigger hangover than anticipated.”

The increased rates in the US are creating great volatility on the stock markets (both the equity and bond markets). This volatility is certain to continue rising, which is why investors should look to buy at the trough levels. 

AI Will Keep Connecting People and Technology

People already have AI-powered devices in their homes and offices. However, the integration of AI is still only in its infancy stage.

Contrary to popular belief that AI will take over jobs, this technology continues to create more and more opportunities for connecting people and tech. Artificial intelligence helps people make data-driven decisions, eliminate errors, and save costs and time.

It automates repetitive tasks, helping businesses focus on their core competencies and gain a competitive edge. Since AI can sift through huge amounts of data in seconds, it truly does bring people and tech together.

There are many more reasons why investing in AI right now could bring myriads of benefits. As already mentioned, one of the investment trends is investing in low-cost ETFs, so that’s where investors should look. 

The Cybersecurity Market Spending Will Surge

 Cybersecurity is increasingly becoming one of the most popular investment areas as well. This is because there are more and more cyber attacks, which is why the demand for cybersecurity is on the rise.

To prevent potential data breaches and security incidents, more and more businesses are investing in cybersecurity. According to IDC data, global security spending will top $103 billion in 2019.

The rising demand for cybersecurity, together with the increased market spending, is fueling further innovation in the industry. Apart from various security software solutions, companies are increasingly investing in business virtual private network solutions.

Business VPNs provide an extra level of security, successfully preventing data breaches and data theft. They encrypt connections and hide online activities, making one completely anonymous online. Investing in these services is a trend that is here to stay.

If you’re looking for lucrative opportunities to invest in this year, keep all these investment trends in mind. Being careful with your investments will help you yield a much better income.

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