It’s been a turbulent year for the global economy and for stocks and shares markets around the world, with the lasting effects of the pandemic and new uncertainty brought on by the Russian-led conflict in Ukraine creating the perfect storm and sending prices of all kinds of assets tumbling again and again.
Thanks to crippling inflation, rising interest rates and failing markets, investors and traders are finding themselves increasingly under pressure to turn things around – and with just three months of the year to do just that, many are already beginning to look ahead to 2023, and what’s required to make it a better year financially.
While things might seem a little dire at the moment, we’re still seeing some trends emerging in the investment world as we learn to adapt to current pressures, and risk-tolerant and risk-averse individuals alike are making tweaks to their longer-term strategies to ensure they work harder for them.
With another new year edging closer, you might be wondering what to do with your own money in 2023 – and currently, these trends are looking to be some of the most popular moves being made by those in the know.
CFDs
CFD – or ‘contract for difference’ trading has become increasingly popular over the past year, and in 2023, we can expect to see interest in this alternative investment opportunity continuing to surge. Allowing individuals to speculate on the price of certain assets – for example, foreign currencies, commodities and shares, and in doing so, benefit from price fluctuations – the boom in this particular trend can be largely attributed to the current market instability.
Brought on first by the global pandemic, and exacerbated further by the repercussions of the Russian invasion of Ukraine, market volatility is at an all-time high, and while traditional trading has become riskier and less profitable as a result, leveraging the Forex market is coming into its own as a viable option to make a profit on a market in turmoil. Still, it’s important to note that making a living from trading Forex and other CFDs requires knowledge, skill and a robust strategy, all of which can take time to amass and create.
Gold
Gold is one of the most traditional go-to commodities available for investment, and has long been one of the most popular. Considered a safe asset whose value not only doesn’t diminish, but actually increases during a financial crisis, it’s free of the market volatility commonly associated with cryptocurrencies and other high-risk assets.
Gold is measured in ounces and represented by ‘XAU’. The current XAU/USD exchange rate standing at 1648.9. There are two different types of gold investment to consider; physical gold (gold bullion) and digital gold – and it’s the latter that has been enjoying a particular surge in popularity.
By investing in digital assets that are electronic representatives of their physical counterparts, traders can take advantage of a vast portfolio of opportunities – which includes investment in ETFs and hedge funds, amongst others. Holders of digital gold enjoy high liquidity and the potential for some impressive passive income, depending on how and where they choose to place their money.
Cryptocurrency
There’s no denying that it’s been a turbulent year for the cryptocurrency market, and while it has long been known for its volatility, the dramatic peaks and troughs we’ve seen throughout 2022 so far are something few experts could have predicted. Nevertheless, as we continue to learn more about the true potential of the blockchain technologies on which top cryptocurrencies are based and their capabilities become increasingly leveraged in new ways, it looks likely that for Bitcoin and alt coins like Ethereum, the best is yet to come.
The luxury world is continuing to embrace cryptocurrencies as means of payment, and as the development of the Metaverse also gathers momentum, some ground-breaking developments could be ahead. The arrival of stock and crypto-trading social network NAGA could signal the beginning of an intriguing shift in the way we trade.
Fine wine
Of course, in the current economic climate, hedging against inflation is the ultimate goal for many investors, and commodities like fine wines can make for a great way to do just that. Consistently out-performing the Consumer Price Index, as well as the average inflation of the G-20 economies since the establishment of the Liv-ex 1000 index in January 2004, it’s perhaps unsurprising that a growing number of investors are opting to play the long game and keep their money safe by ploughing it into assets like this.
Limited ability and graceful aging both go in fine wines’ favour. Because they tend to be produced in such tiny quantities, they’re difficult to source on the secondary market, which ultimately sees wine enthusiasts from across the globe prepared to pay eye-watering amounts in a bid to get their hands on specific bottles. As wine matures and nears its peak, its value becomes less volatile and prices increase – so if you’re not in a hurry to make some returns then this could be a wise investment choice for 2023.
Disclaimer: Investing money carries risk, do so at your own risk and we advise people to never invest more money than they can afford to lose and to seek professional advice before doing so.
