Investment Insights – Trends and Opportunities for 2024

Investment insights provide valuable and actionable knowledge that can help improve investing performance while preventing costly errors. They can be generated using various tools and frameworks.

2023 was an intense year for investors, from rising interest rates and near record inflation rates, to new opportunities that still existed.

1. The rise of digital

Digital technology is revolutionizing industries from entertainment and healthcare to retail; however, not all sectors are experiencing equal levels of disruption.

Research we conducted showed that investment management firms are increasing their digitization efforts at an increasing pace, unlike in other industries where modernization of governance and controls was tightly tied (see figure 3).

Though digitization can bring many benefits for an industry, misallocation of resources may hamper their full effect. AI analytics are one way to prevent such misallocation; they enable analysis of vast amounts of nonconventional data to identify stocks with higher probabilities of outperforming. It will become more available and cost effective starting 2024.

2. The rise of automation

Geopolitical events like Ukraine and Israel conflicts have an enormous effect on investors, so it’s crucial that investors carefully evaluate how such factors may impede long-term investment opportunities. Strong economic growth and productivity expansion remain key drivers of prosperity, so investing in companies with robust innovation ecosystems is necessary in capturing such opportunities.

Automation not only increases efficiency and costs; newer forms are expanding the types of jobs machines can take over – possibly replacing employees in sectors like retail, finance and healthcare – yet these machines may supplement human labor instead allowing employees to focus more fully on other aspects of their job.

As GenAI speeds up innovation in investment management products, the pace of product innovation will quicken. GenAI may speed up traditional levers for cost reduction, top-line transformation and revenue growth – creating an opportunity for those managers who can develop, test and launch scalable and innovative strategies ahead of those struggling to keep up.

3. The rise of AI

AI has quickly become an indispensable part of modern life, seamlessly blending into many technologies and industries. AI plays an invaluable role in financial services – helping streamline processes like data analysis and trading while also aiding fraud detection through automated phone systems and chatbots.

AI’s capabilities are expanding at an incredible rate, including generative algorithms that create content and data. These models often resemble human counterparts in appearance and could potentially transform how we work.

As 2019 begins, a new investment landscape is emerging. Inflation seems to have peaked, while interest rates should decrease and allow more normalized market returns – all factors which support growth of stocks and bonds as well as real estate demand.

4. The rise of cryptocurrencies

Bitcoin investors have seen incredible returns in recent years, yet it’s important to recognize the risks involved before venturing into cryptocurrency investments. Cryptos are unregulated, meaning their value could fluctuate quickly without backing from traditional financial instruments like deposits.

Proponents of cryptocurrency argue it can serve as a democratizing force, taking power away from central banks and Wall Street in terms of money creation. Critics warn of its potential to fuel fraud, create inequality and cause extreme market volatility. When selecting an investment cryptocurrency to invest in, be mindful of its usage as widespread adoption often drives long-term price increases while low correlation with other markets makes this investment choice appealing as diversification tool.

5. The rise of socially-based trading

Social trading allows traders and investors to observe the behavior of other traders or experts to copy or replicate their investments. While this form of investing may provide convenience for those without enough time or resources to manage their own portfolios independently, it requires strong work ethics if it is to succeed.

Consumers have increasingly taken to using social trading platforms and services like NextMarkets that enable them to observe and copy trades from other traders across global markets. This provides valuable insights that may otherwise go overlooked by professionals – such as changes in market mentality or indications of where momentum might head next.