Navigating the Investment Landscape: Key Trends for Everyday Investors

Justin Hopper July 31, 2023Last Updated: July 31, 2023

2 minutes read

Updated 31.7.2023 15:00

As we step into 2023, in the ever-changing world of finance, staying ahead of the curve is crucial with investment trends in 2023.

This article serves as your compass, guiding you through the latest trends and strategies shaping the investment world in 2023.

1. The Inflation Conundrum

Inflation has been the economic glitter of 2022, sticking to everything from the gas pump to the grocery store. The big question for 2023 is whether inflation will drop toward the Fed’s 2% target rate. Many experts suggest that’s unlikely, although it’s worth noting that the Fed’s six 2022 rate hikes will take a while to work their way through the economy.

2. The Rise of Alternative Investments Trends 2023

2023 holds promise for alternative investments finally earning a place in everyday investor portfolios. With their low correlation to traditional asset classes like stocks and bonds, alternatives could blunt inflation- and recession-induced volatility and buoy returns more than dividend stocks alone.

3. The Allure of Savings Bonds

If there’s a silver lining to the inflationary cloud, it’s the newfound popularity of savings bonds—specifically Series I savings bonds. In April 2022, the I bond rate jumped to a historic high of 9.62%, contrasting the S&P’s year-to-date 15% decline.

4.The Crypto Recovery

It is pretty easy to argue that 2023 has to be a better year for crypto than 2022 since it could hardly be worse. Multiple stablecoins slipped their pegs in 2022, fueling a midyear crypto crash that wiped out hundreds of billions in value. Moving into 2023, look for cryptocurrency businesses to woo investors with stores of cash reserves instead of trendy coins and celebrity endorsements.

5. The Emergence of ESG Investing Trends

Environmental, Social, and Governance (ESG) investing has taken the financial world by storm over the last several years. In 2020, US ESG funds added about $51 billion in new capital. That’s up from just over $5 billion of inflows a few years earlier in 2018.

6. The Influence of Meme Stocks & Retail Investors

While passive investing has been taking share from actively managed funds for years, retail investing is also on the rise. Stocks like Gamestop, AMC Entertainment, and Blackberry have all been forced higher by retail investors communicating largely in online forums. Even now, Goldman Sachs has adjusted their price target for the previous meme stock AMC. According to MarketBeat, the company currently has a consensus rating of Hold and a consensus target price of $36.72

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7. The Rise of Robo-Advisors

Automatic robo advisors are one of the fastest-growing trends in investment management. Robo-advisors are automated investment platforms that use algorithms to manage portfolios. Freaky right? Typically, these services are focused on younger investors and lower balance accounts, giving non-wealthy clients access to cheaper alternatives than traditional wealth advisors. What are your thoughts? Tweet us at @WealthyVc!