Investment Trends To Watch Leading Into 2025
As 2024 comes to a close, it's important to spend just as much time looking backward as we do looking forward. That is especially true in the world of investing, where the past has a lot to teach us about what the future might hold.
Author:Michael RachalReviewer:Liam JonesDec 04, 2024372 Shares13.7K Views
As 2024 comes to a close, it's important to spend just as much time looking backward as we do looking forward. That is especially true in the world of investing, where the past has a lot to teach us about what the future might hold.
Therefore, as we move into 2025, it's important to better understand several key investment trends that are emerging. At worst, they represent short-term opportunities to start the new year off as strongly as possible. At best, they could shape the future of wealth building as we know it—and the more you learn about them today, the easier it will be to capitalize on them in the future.
Using Advanced Technologies In Real Estate
One of the biggest trends to emerge in recent years is how the real estate sector regularly uses advanced technologies to further its goals. This can include not only artificial intelligence (AI) as a broader concept but also in relation to other techniques like skip tracingas well. These tools often make it easier to not only find hidden opportunities that may have otherwise gone undiscovered but to take advantage of them as fast as possible.
Take skip tracing, for example. Skip tracing is hardly a new concept and has been used by real estate professionals (as well as those in other industries, like law enforcement) for years. If you are a debt collector trying to track down someone who owes money they don't want to pay, skip tracing is likely how you'll be able to do it.
But thanks to the rate at which technology continues to advance, the game has changed in terms of how skip tracing can be applied to real estate investment goals. Modern-day tools help investors track down property owners, for example, to locate and take advantage of off-market deals.
For the sake of example, say you've done your due diligence, and you know a particular area is going to be an incredibly hot market over the next five years. Naturally, you want to get in on the ground floor now - but nobody is selling. However, after taking a tour of the area, you recognize that a few seemingly abandoned properties might be a good way to start.
With the right skip tracing tools, you can find those property owners and make them an offer before they have a chance to go through a more traditional route. Skip tracing can also be a great way to find overlooked assets, making it easier to secure profitable investments even in a highly competitive market.
Note that none of what was just described was necessarily "impossible" a decade ago. It's just that it would have taken a significantly larger amount of time, energy, and (likely) money to get the same result. With technology and the ways in which it is rapidly evolving, you can get to those opportunities far faster. This helps you build a better portfolio while freeing up as much of your valuable time as possible to focus on more important matters.
The Growing Importance Of Sustainable And ESG Investing
Another key investment trend to pay attention to is the increased emphasis on sustainable investing, particularly when it comes to ESG (or "environmental, social, and governance").
If you've been following the news over the last few years, you'll know there have been two major topics of discussion. The first is the ongoing global climate crisis and what, if anything, we can do to help. The second involves an increased emphasis on equality, diversity, and inclusion.
ESG investing is essentially a response to both, helping to continue economic growth in a way that improves the lives of future generations.
One of the major benefits of ESG investing comes from the improved risk management it offers. Essentially, ESG means you get to be more selective about who you partner with and which companies you invest in. You can prioritize those that themselves emphasize things like clean energy and the responsible use of resources, for example.
For many, this can often lead to enhanced portfolio performance - particularly over the long-term. Companies that meet the criteria one would look for in an ESG strategy tend to have enhanced operational efficiency, which leads to increased cost savings and more profitability, which in turn helps to strengthen your portfolio in a number of ways. That's not to say that you cannot get the same result in other ways - it's just that in recent years, this has become a great way to accomplish a number of core goals all at the exact same time.
The Rise Of Alternative Assets
Finally, a trend that has gained traction over the last several years is investing in alternative assets. Cryptocurrencies and even real estate tokenization are two major examples, but rest assured, there are many more.
One of the major benefits of investing in cryptocurrency is diversification. It's another way to protect your assets from various factors, particularly those beyond your control. Cryptocurrencies are also a way to protect against the impact of inflation, particularly since their supply is usually limited.
Many of the same benefits hold true of tokenizing real-estate assets. Tokenizing offers lower costs, better price discovery, and increased liquidity for investors. It's also a way to combat fraud—something that is unfortunately all too common in the modern era.
Again, these are just a few key investment trends you'll want to watch out for as we head into 2025. There are others, but when you consider how quickly things tend to move, there's no guarantee they will make it to the end of the year. Still, learning how strategies like those outlined above fit into your own plans is a great way to utilize the new year for what it was meant to be: a fresh start.
Michael Rachal
Author
Michael Rachal believes that luxury lies in the details. With over 20 years of experience in the luxury travel industry, he has crafted hundreds of bespoke itineraries for clients seeking personalized, unforgettable experiences.
Whether guiding clients through private cultural tours or curating culinary journeys with world-renowned chefs, Michael ensures that each trip is tailored to perfection.
His ability to anticipate needs and exceed expectations has earned him a reputation as a leading expert in luxury travel.
Liam Jones
Reviewer
Liam Jones has made it his mission to prove that adventure doesn’t need a hefty budget. Having traveled to over 40 countries, he specializes in finding affordable ways to experience the world, from the best street food in Bangkok to hidden gems in Lisbon.
Liam’s travel tips have reached thousands of readers, empowering them to see the world on a shoestring budget without sacrificing quality. With a deep passion for local cultures, he continues to share his travel hacks, ensuring adventure remains accessible to all.
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