With the start of a new year and decade, people are looking for new things to do, create, enjoy, and invest in. While there are 1,000+ investment products to put your savings in, not every product is created equal in terms of risk, reward, and market drivers. To help you position yourself favorably in the upcoming market trends this year, here are five things investors should watch out for.
Demand for tax-free revenue is picking up momentum. The yield curve has a lot of room for improvement, and any developments in the current limit for state and local tax deductions are nonexistent. The convergence of these two will continue to boost the demand for tax-free revenue sources this year. The demand is pegged to be the highest among states that are impacted by the state and local tax deductions cap or SALT cap.
With Tesla leading the way, electric vehicle companies are starting to create a much bigger market that investors and customers can no longer ignore. Aside from North America, European carmakers are also gearing up to make this year the year of EVs based on industry experts and analysts. The increase in demand is fueled by the growing consciousness of the public when it comes to the environment. As climate change becomes a real issue, consumers will turn to EVs for an eco-friendly transport solution.
AI advancements are set to disrupt more industries this year, including finance, healthcare, cars, and even the legal system. Companies are trying to find more ways to cut costs and fatten up profit margins using the different branches of artificial intelligence, mainly machine learning and data science. Another tech-related subcategory to watch out for is cybersecurity, thanks in part to newly introduced policies as well as increased risk of security breaches and data theft.
Still, one of the safest industries to invest in this new year is real estate. One significant change in the industry’s landscape is the concentration of renters in highly urbanized areas. Thanks to the relatively nascent gig economy as well as the rising human population, investors should expect increased demand in both residential and commercial real estate.
Knowing what investment trends there are in 2020 can help you time your position entries and exits for the best possible ROI.