After rising, inflation is slowing down in the US. The supply chain across the world is disrupted because of geopolitical conflicts and pandemic-related issues. According to recent estimates, price pressures are expected to moderate this year because of easing supply chain issues.
Infrastructure and real estate are the best bets for those looking for investment ideas this year. You can expect predictable growth, attractive yields, reduced volatility compared to equities, and the benefits of inflation hedging. However, you need to be selective in picking the right opportunities to park your funds and grow their value. Joseph Audia is an experienced investment advisor who can help you select the right properties in locations where significant growth is expected.
Best bets on infrastructure investments
You can focus on social infrastructure (education, healthcare), transportation (logistics, airports), and digital infrastructure (cloud connectivity, data centers) for long-term gains. The US government is also embarking on large infrastructure investments that include the IRA (Inflation Reduction Act) and the bipartisan Infrastructure Law. Europe is also expected to revamp its subsidy and industry policies in response to the US IRA by the end of 2023. Therefore, all these will contribute to the infrastructure companies that focus mainly on clean energy.
Most companies’ shares experienced a sell-off in 2022. Rising rates and elevated valuations have caused a correction in the market. However, some of the stocks have overreacted. Despite all these, they are attractively valued at present market rates and offer long-term investment opportunities. You can consider investing your funds in the most disruptive and fastest-growing companies for excellent returns in the long term.
Focus on companies using innovative solutions
In the current inflationary environment, businesses focus on employing innovative solutions and lowering operational costs. It improves efficiency and helps boost profitability. In addition, companies engaged in offering innovative products are the best bets for investment. Stock market brokers like Joseph Audia will help you differentiate between good-quality and high-growth companies and between low-quality and high-growth companies. You need to invest in companies with sound fundamentals and attractive valuations. It is one of the best investment ideas to grow your fund’s value in the long term. Some of the innovative companies include clean tech and biotech.
Invest in selective small caps
According to a recent study, small caps have performed very well at times of higher and lower inflation. In the past, the median small caps have offered handsome returns of 21%. You can seek the help of stock brokers to select the right small caps for your investment. Their valuations are cheaper and offer attractive returns.
Mega-cap internet stocks
After losing significantly in 2022, mega caps are expected to stage a comeback this year. If your investment time frame is over 2 years, you can consider investing in these stocks. You can expect handsome returns from these stocks in 2024. It is advised to focus on investing in machine learning and artificial intelligence for incremental returns. However, you need to monitor your investments and make changes to your portfolio at regular intervals to amass huge wealth.
