While the past two years have seen some of the most volatile market shifts and bearish sentiments known in recent times, countless well-timed investments and near-perfect forecasting on speculative instruments have enabled people worldwide to come out of 2021 in a much better financial position than they began in the year 2020. And given that global economic recovery continues to build up as more time passes, there’s no denying that more opportunities await this coming 2022 as the bullish momentum strengthens.
However, despite the many positive aspects present in investment markets today, a large number of newbie investors are still reluctant about entering the market, either due to fear of further uncertainty or inflation rates becoming worse. And while those factors must be accounted for, we firmly believe that now’s not the time to remain passive but switch to a more active strategy toward investing instead.
1. Follow Where Innovation Is Headed
Firstly, an excellent strategy to include in your investment plan for 2022 is following where the innovation is headed and understanding the trends in emerging technologies that will soon establish themselves as norms in the near future. Yes, these investments may be speculative at best, but given the recent performance of most sectors under the tech industry, there’s a pretty good chance of a substantial rate of return in the long run.
- The Rise of Cryptocurrencies and the Blockchain: Talks on cryptocurrencies are everywhere nowadays. What seemed like an investment vehicle still in its infancy is becoming notorious for its potential for massive returns and future utility in the metaverse. In fact, about a month ago, we saw some of the biggest purchases of virtual real estate go through. While we don’t expect you to drop a million dollars toward blockchain development, it won’t hurt to diversify your portfolio into the crypto space.
- Investing in the Underlying, Big Tech of It All: For those still a bit skeptical about investing a more significant share of their investment portfolio into cryptocurrencies, one angle you can take is by investing in the underlying, big tech of it all. At the end of the day, cryptocurrencies, blockchains, and the future of the metaverse will rely on computing speed, artificial intelligence, and VR technology. Therefore, increasing your share of Google, Meta, Nvidia, and similar stocks will help.
2. Taking Advantage of the Erratic Job Market
In addition to the traditional meaning of investments, another way you should invest in this coming 2022 is to take advantage of the erratic jobs market and discover what aspects of your career you can advance much faster. Today’s great resignation has left many jobs open, senior positions up for grabs, and well-established companies at a weakened state to be outshined by new startups. It would be a waste not to take your slice of the economic pie.
- Focus on Personal Growth and Development: If you’ve been slacking on learning new skills and gaining more relevant competencies in the modern world, let this be the sign to focus more on personal growth and development. For example, a firm grasp on coding and software engineering can help you get into jobs that require a technical background, or maybe even take up leadership coaching and mentoring to prepare you for a more significant role at work.
- Transform Your Talents Into an Actual Business: Likewise, with the growing earning potential in the gig economy and rising popularity in self-employment, there’s also plenty of opportunities to transform your talents into an actual business. And even if your current setup is pretty barebones at the moment, scalability is becoming increasingly accessible with online platforms, not to mention possible integration with future digital economies in the metaverse.
3. But Don’t Forget to Allocate to Your Emergency Reserves
Last but not least, no matter how appealing current investment opportunities appear, it is crucial to maintain a steady allocation of resources to your emergency reserves and more traditional investment markets. While there’s an extremely high ceiling to reach for markets today, that’s not to say some downside isn’t possible. Thus, you will still need a diversified portfolio to weather any storm and reap the benefits for the next move upward.
- Implementing a Bit of Conservatism With Investments: Although increasing your risk appetite is the target goal for 2020, you must balance the scale by implementing a bit of conservatism to your strategy. So despite pouring a greater percentage into investments like ICOs, NFTs, tech stocks, don’t forget to secure your finances by knowing the upper limits of 401k contributions and reviewing your retirement savings.
Position Yourself for Financial Success in 2022
Overall, we think the year 2022 will provide numerous opportunities to attain financial success and freedom for the long term, so instead of waiting for divine intervention that may not come, we suggest planning as early as today. And, if you play your cards right and position yourself aptly according to market demand, it’s not impossible to break into the young millionaires’ list.