Investing has become extremely popular, even a trend, among the general public. This trend has been especially bolstered by the expansion and popularity of cryptocurrency.
People like to invest in general because it provides them with a second source of income, even if they are working on something else.
Another reason for investment’s popularity is that it is a form of passive income. This means that earning money does not require you to work as hard as you would for any other employment.
There are a variety of investment alternatives available, ranging from extremely safe options like CDs and money market accounts to medium-risk options like corporate bonds and even higher-risk options like stock index funds.
So, if you’re thinking of investing but want to be sure you know what you’re getting into, continue reading. In this article, we’ll go over the top 11 investing trends for 2022 that can help you achieve your goals.
Let’s get right to it.
Cryptocurrencies are the most talked-about investment right now. Due to the ease with which anyone may invest in these digital assets, without needing a minimum amount in most situations and with a low risk percentage, they offer an investment that anybody, young or old, can make.
Here are some facts regarding cryptocurrencies in 2022 that will convince you of the investment’s importance:
- According to TripleA, there are over 300 million crypto users globally, with an average ownership percentage of 3.9%. Currently, over 18,000 businesses accept cryptocurrency payments.
- By 2023, the worldwide blockchain market will be worth $23.3 billion.
- According to Statista, the top cryptocurrencies in the world that are worth investing in are:
- Bitcoin (BTC)
- Ether (ETH)
- Solana (SOL)
- Terra (LUNA)
- Binance Coin (BNB)
- Aave (AAVE)
- Uniswap (UNI)
Thus, Bitcoin remains the top cryptocurrency to invest in at the moment, with a price of $40.143,80 (at the time of writing).
Bitcoin’s price has soared by almost 540,000% between 2012 and 2021. Bitcoin saw a 274% annual growth rate in 2020, and the cryptocurrency market is expected to develop at a compound annual growth rate of 56.4% from 2019 to 2025.
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2. High-Yield Savings Accounts
A high-yield online savings account pays you interest on your cash balance. High-yield online savings accounts, like savings accounts at your local bank, are conveniently accessible vehicles for your money.
Because of decreased overhead costs, online banks typically offer much higher interest rates. Furthermore, you may usually get your money by transferring it instantly to your primary bank or by utilizing an ATM.
Of course, a high-yield savings account should be a minor part of your overall financial portfolio. Consider how you’ll use the account to augment your existing savings and investing strategies, and then determine how much cash you feel you should keep liquid in your individual situation.
3. Short-Term Certificates Of Deposit
A certificate of deposit (or CD) is a type of financial asset that is often marketed by banks, thrift institutions, and credit unions.
CDs differ from savings accounts in that they have a definite period, often up to 12 months, and a fixed, higher interest rate.
Short-term CDs do not contain coupons, and the holder receives the principal as well as the accumulated interest upon maturity.
People who withdraw their money before the maturity date will be charged an early withdrawal penalty.
4. Short-Term Government Bond Funds
Bond funds having maturities of less than five years are referred to as short-term bond funds. Commercial paper investments, certificates of deposit, and other similar instruments can be used.
Because the maturities of these short-term bonds are limited, the interest rates provided by these funds are lower than those offered by long-term bond funds.
Here are some of the best short-term government bond funds:
- SPDR® Portfolio Short Term Treasury ETF
- Schwab Short-Term US Treasury ETF
- Vanguard Short-Term Treasury ETF
- iShares Agency Bond ETF
- iShares 1-3 Year Treasury Bond ETF
- Franklin Liberty Short Dur US Govt ETF
- First Trust Low Duration Oppos ETF
5. Series I Bonds
A series I bond is a non-marketable, interest-bearing US government savings bond with a fixed interest rate and variable inflation rate (adjusted semiannually). Series I bonds are intended to provide investors with a return while also protecting their buying power.
Most Series I bonds are issued online, however, physical certificates can be purchased for a minimum of $50 using your income tax refund.
6. Short-Term Corporate Bond Funds
A short-term corporate bond fund is one that invests in bonds with maturities of less than five years. These debt funds invest at least 80% of their assets in the highest-rated corporate bonds (AAA and AA+).
Many corporate bond funds also invest in government securities since there is no credit risk.
7. S&P 500 Index Funds
The S&P 500 is a stock market index that measures the 500 biggest firms in the United States based on market capitalization.
It shows the performance of the stock market by reflecting the risks and returns of the largest corporations. Investors use it as the general market benchmark against which all other assets are measured.
You cannot invest directly in an index because it is simply a measure of the performance of its component stocks. You may invest in an index by using exchange-traded funds (ETFs) and index funds, which seek to duplicate the performance of certain indexes.
ETFs specialize in passive index replication, giving investors access to all stocks in a certain index. As a result, an S&P 500 ETF exposes the investor to all of the stocks in that index.
8. Dividend Stock Funds
Dividend mutual funds are funds that invest in equities that pay dividends. The dividends can then be reinvested into new fund shares or used as a source of income.
Purchasing shares in a firm that pays dividends is one method to begin earning them. Many corporations pay dividends, and many have a lengthy history of increasing payouts year after year.
A dividend mutual fund may invest in accordance with an index that monitors firms with high dividend yields or a history of growing dividends.
Funds and ETFs with high dividend yields might be an appealing alternative if you want a more diversified strategy.
Good examples of the best dividend stock funds are The Vanguard High Dividend Yield Index Admiral Shares (VHYAX) and The Vanguard Dividend Appreciation Index Admiral Shares (VDADX).
9. Value Stock Funds
A value fund seeks out stocks that are undervalued in terms of price based on fundamental characteristics. Growth investing, which focuses on emerging enterprises with high growth potential, is frequently contrasted with value investing.
The key reason private investors choose such stocks is that they may be undervalued due to momentary circumstances, yet they deliver better long-term returns.
10. Nasdaq-100 Index Funds
The Nasdaq 100 Index is a collection of the 100 largest and most actively traded firms in the United States that are listed on the Nasdaq stock market. Except for commercial and investment banks, the index covers enterprises from a variety of industries.
The most straightforward approach to invest in the Nasdaq Composite Index is to purchase an index fund, which is a mutual fund or exchange-traded vehicle that passively follows the index. An index fund is one that invests in all of the components of a stock index at the same weights as the index.
11. Rental Housing
A rental property is one that is occupied by someone other than the owner and for which the renter pays the owner a mutually agreed-upon rent on a regular basis.
Being a landlord may be a lucrative way to make money in real estate, but it’s neither simple nor glamorous. Aside from selecting the ideal property, preparing the unit, and locating reputable renters, there are always maintenance issues to deal with.
Investing can provide a periodic, extra source of income.
It is also true that making investments can be dangerous and might result in capital loss.
As a result, it is worthwhile and good practice to keep an eye on trends and investments with the potential to expand and be lucrative over time.
We have highlighted the top 11 investing trends for 2022 in this post. You may select which one to put your capital or savings in based on your availability, requirements, or preferences.
Thank you for taking the time to read this article. Hopefully, you found it helpful and informative.
If you want to read more, please check out this guide on wise investing.
Author: Flavia Silipo is a skilled SEO copywriter and digital marketing specialist with over two years of experience. You can find her on LinkedIn.