WE’RE WATCHING THESE 4 INVESTMENT TRENDS FOR 2024. ARE YOU?
Welcome, new year. Hello, new opportunities!
2024, like a bright, shiny coin, offers the hope of prosperity and good fortune, not just financially but also in health, love and memories made with loved ones. Authentic hope is holistic, you might say, as all the pieces of prosperity and good fortune—love, intention, commitment and discipline—must be practiced and interwoven for success.
What is your hope for 2024?
We’re always looking ahead with hope at Alia, especially at the beginning of every new year. Although trends in finance and investing are continually emerging, we tend to see overarching trends that are likely to dominate the market in the upcoming year.
Understanding these trends enables us to make more informed and strategic financial decisions. Here are the top 4 investment trends we’re following right now as we take our first steps with great hope into 2024.
#1 ARTIFICIAL INTELLIGENCE
From ChatGPT, launched just over a year ago in November 2022, to virtual hospitality agents, artificial intelligence (AI) has flown in like a gust of wind, rustling every industry and space it’s touched. Like every big, new thing, AI brings to the world pros and cons, attractors and detractors.
Industries poised to reap huge benefits from AI applications include healthcare and medical innovation, professional services and industrial automation.
Smart Stat: Morningstar research estimates revenue associated with AI semiconductors and software will grow from $75 billion in 2022 to $280 billion by 2027.
#2 MOVEMENT TOWARD A LESS CONNECTED WORLD
The pandemic, the war in Ukraine and the Israel–Hamas armed conflict, along with continuing China-U.S. tensions, have pressed companies to realign their global strategies, many choosing to bring their operations closer to home. This shift is also powering near-shoring and re-shoring of manufacturing production to ensure greater control over resources and supply chain management.
This move isn’t taken lightly. Eighty percent of CEOs report ongoing adjustments to prepare for the potential of deglobalization, with a particular focus on supply chain resiliency.
Investment opportunities in this sector include:
Productivity-improving products and services
Robotics and automation in new product facilities
Technology security: cybersecurity, semiconductors, satellite technology and networks
Food security and water efficiency
#3 HEALTH & WELLNESS
Baby boomers getting older and overall rising incomes, in addition to other factors, have definitely turned our eyes, pocketbooks and potential investments toward the health and wellness industry.
The Global Wellness Institute projects 8.6% average annual growth, with the wellness economy reaching $8.5 trillion in 2027. Consider these 11 sectors of the wellness economy:
Personal care and beauty
Healthy eating, nutrition and weight loss
Physical activity
Get the blood pumping: Fitness technology exploded in 2020 (+22.5% growth)—no surprise as to why. The pandemic saw millions of us moving from in-person workouts to digital, at-home platforms. The trend continues to grow with +15% average annual growth from 2020–2022.
Wellness tourism
Public health, prevention and personalized medicine
Traditional and complementary medicine
Wellness real estate
Did you know? Wellness real estate are homes or communities designed and built to support residents’ whole health.
There also is a growing trend among real estate developers to prioritize wellness in commercial real estate projects. This niche industry, referred to as “wellness real estate,” is projected to experience significant growth.
Mental wellness
Spas
Workplace wellness
Thermal/mineral springs
Of prime note in the health and wellness sector: Baby boomers getting older could prompt a 75% increase among Americans ages 65 and older requiring nursing home care, to about 2.3 million in 2030 from 1.3 million in 2010, according to the Population Reference Bureau.
#4 MEDICAL INNOVATION
Innovative technologies, namely artificial intelligence, are quickly transforming healthcare. By most measures, this medical innovation is good timing, what with staff shortages, caregiver and provider burnout, and stringent new measures related to patient safety and quality of care in light of the pandemic.
Of note the Global Artificial Intelligence in Healthcare Market Size is valued at USD 11.2 Billion in 2022 and is estimated to achieve a market size of USD 427.5 Billion by 2032; growing at a CAGR of 44.0%
These are just four of the top investing trends we’re keeping an eye on as we begin the year. If you’d like to discuss these or other areas of interest, feel free to contact me.
We’ll also leave you with this insightful takeaway: LPL Research’s Outlook 2024: A Turning Point. It provides insight and analysis into next year’s opportunities, challenges and potential surprises in an easy-to-read report.
Here’s to a smart, thoughtfully planned and hopeful 2024!
