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The global economy is turbulent at best right now. Inflation is at a 40-year high, supply chains are disrupted, and the war in Ukraine has had a ripple effect that’s been felt worldwide. With so much uncertainty, it’s essential to invest wisely. Throughout this article, we consider potential issues that could impact market performance in 2024, and we take a look at five sectors that may be worth exploring.
Technology
The technology sector has been growing rapidly over recent years, and it’s showing zero signs of slowing down. Driven by innovation and increased adoption of technology across all industries, an investment in technology could yield high returns. Here are some of the subsectors to consider in 2024:
- Cloud computing: Companies providing cloud computing services are in a great position to see growth in 2024, especially as more businesses turn their focus toward the cloud.
- Artificial intelligence (AI): The AI revolution is well underway, and it’s having an impact on a wide range of industries. Making the right investment in an AI company could be extremely rewarding.
- Cybersecurity: Businesses of all sizes face cybersecurity issues, which is why this subsector could be worth your investment.
Even though the tech industry can be profitable for investors, it’s important to remember how highly volatile it can be. Risks to be aware of include regulation changes, which could hurt the value of certain tech companies.
Commodities
Commodities are raw materials used to produce other services and goods. They include things like gas, oil, agriculture, and precious metals. Commodities are a fantastic investment choice because they have the power to hedge against inflation. Here are a few reasons to invest in commodities in 2024:
- Growing demand: The global population is continuing to rise, which drives up demand for commodities. This is especially true in developing countries, which have seen a growth in the middle class.
- Supply chain disruptions: Disruptions to supply chains have driven the cost of commodities up, and it’s estimated that these issues will continue into 2024.
- Rising inflation: Inflation will continue to stay high in 2024. The value of commodities increases during inflation, which is why they’re a good investment choice.
There’s no denying that investors can find secure investments within the commodities sector, but it’s important to do your research to seek out unique insights. As well as this, there are no guarantees, so always be prepared to lose everything.
Other Markets to Explore
Alongside technology and commodities, there are other respectable sectors for investors to explore in 2024. For example, the healthcare sector is a safe bet for riding out economic turmoil because there is always demand. Alternatively, consumer staples (food, clothing, and personal products) always have demand.
Outside of traditional markets, cryptocurrency could be a valuable addition to investor portfolios in 2024. After all, the next Bitcoin halving is incoming, and history shows that the entire market will enter a bull run.
Technology and commodities are two of the strongest markets to invest in 2024, but it’s important to do your research and diversify.