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Well, where to start?
2020 turned the world on its head as pandemic pandemonium swept us all along in its terrible wake.
Then came 2021, the year where we all shook ourselves down, tried to make sense of what was happening… and move forward.
From an investor’s point of view – 2021 was a year like no other, with amazing developments opening up, both digital and physical.
Here’s our pick of the Five Investment Trends from 2021 that could have a big say in how 2022 unfolds economically, socially and financially.
In no particular order…
The Metaverse
This virtual world seemed to come out of nowhere, a place where people interact virtually in real-time, in virtually simulated scenarios/domains – from work to shopping to socializing and probably wherever your imagination can take you!
It became a hot topic in the second half of 2021… and then really exploded as Tech companies and mega-corporations such as Facebook, JP Morgan, and even Manchester City football club announced they would be expanding their fields into the metaverse. Facebook even changed its entire company and brand name to… wait for it… Meta!
Analysts predicted the value of Metaverse by the end of 2024 to be an astonishing $800 billion.
So, massive investor potential is on the horizon. Order your headset now (not that you need one to actually invest, of course)!
FinTech
Financial Technology (FinTech) is the latest in tech innovation. It aims to breathe new life into the financial sector, seeking to improve, secure and automate the delivery of financial services such as investments, insurance, trading, banking services and risk management.
FinTech innovations include AI, RoboAdvisors, Big Data, Smart tech, Blockchain and cryptocurrencies.
FinTech has been gradually developing for years, but really started to take off in 2014, with rapid growth in London. The Mayor’s office estimated that 40% of the City of London’s workforce was in FinTech.
In the first quarter of 2021, there was a record high of 2,456 deals accounting for $98 billion in investment.
Current global worth is put at around $529 Billion. You can bank on that rising as the world continues its rapid march toward global digitalization.
Cryptocurrency
Not surprisingly, Crypto makes it onto our list. It was one of 2021’s fastest-growing sectors. Social exposure and mainstream adoption are at their highest since Bitcoin and Blockchain first appeared on the scene in 2010.
In just ten years, the market has boomed to its current astounding value of $3 trillion, with 2021 seeing a sudden escalation in the number of new cryptos and altcoins being created.
There was also the introduction of the metaverse, DEFI, NFTs/Gaming and Layer 1 blockchains.
Balance sheets show the rise in larger stock companies investing in crypto, with the likes of PayPal officially making crypto payments possible on its platform.
Analyst’s forecast continued to grow throughout 2022, but we say it goes beyond “forecasting”; its growth is inevitable.
Electric Vehicles
It may have passed under the radar with everything else going on during the “pandemic period”, but 2021 witnessed a boom in the Electric Vehicle industry.
Analysts estimate growth from 10 million to 145 million EV vehicles on the road in the next few years. There is an inevitability to this as many governments, including the UK’s, want to ban fuel-driven vehicles, mainly cars, in favour of EVs by an ambitious 2025-2030.
When you realise all major players have committed to increasing the development and availability of EVs, it is easy to understand why a market generation of $ trillions is predicted.
The fuel shortage and subsequent record prices at the petrol pumps in early 2022 are a good indication that the end of traditional motorised transportation is nearing rapidly.
Real Estate
According to its World Research team at renowned property agent Savills (founded in 1885 with 600 offices around the world), property is the world’s biggest store of wealth, with residential pushing its value to new heights.
The value of all the world’s real estate reached $326.5 trillion in 2020, a record high.
The United States is the largest global commercial property market (27%), followed by China (16%) and Japan (6%). Combined, they make up just under half of all commercial property value.
In the US, total commercial value by end of 2021 was $34.3 trillion, a new peak, with the US overall real estate market hitting $43 trillion.
But valued at $35.4 trillion, agricultural land became more valuable than all commercial real estate, following a period of exceptional growth in the years after the global financial crisis.
Investors started taking advantage of this as evidenced by the growth in popularity of real estate investment trusts (REITs).
Further market increase has been predicted for 2022.
Conclusion
All of the trends highlighted here saw a significant forward trajectory from previous years and are a good indicator of where we are going as a civilization.
They are also fundamentally solid investment areas.
As with all trends, you just have to follow the money, do your own research and be confident with your investment.
