One of the most common investing trends is to invest in socially responsible companies. According to a recent Bloomberg study, ESG investments will be worth more than $41 trillion globally by 2025, representing nearly a third of all assets under management. ESG investing has also become popular among Millennials, who are increasingly socially conscious.
With inflation rising, many investors are looking for ways to protect their purchasing power. As a result, they are diversifying away from high-tech stocks. The S&P 500’s 10-year P/E ratio is currently at 39, almost double the average valuation in the modern era. This trend has led to a significant shift in investing trends, as many investors are now diverting their portfolios from major tech companies and toward more stable, less volatile assets.
However, despite these trends, consumer behavior isn’t the only factor to watch. The world is undergoing a global macroeconomic environment shift, which will affect the type of investing people do. For example, consumers may find it more difficult to invest in the U.S. if it enters a recession. This means that retail investing brands will need to find new ways to attract consumers in a tough environment.
Another trend to watch is the rise of alternative currencies such as bitcoin. While traditional financial institutions may not like this new alternative currency, it’s becoming increasingly popular with consumers. In fact, many corporate leaders have begun accepting Bitcoin as a form of payment.