Unless you still bear the mental scars of the Great Depression, odds are you've got some money invested somewhere. Once you taste those sweet returns of the stock market or even the modest gains of a lower-risk investment vehicle, stuffing cash under your mattress doesn't cut it. Many of us trust in financial advisors to make the decision of where to sink those precious savings. If you want to know a bit more about where your advisor's head is at, we have some people you should listen to.
These industry insiders weigh in on trends that could shape investing as we know it, in 2019 and beyond. Here's what they have to say:
1. Cheryl Cheng, General Partner at BlueRun Ventures
“-Companies are staying private longer. This has an impact on how investors think about making investment decisions since the hold horizon is so long.
-There has been a move back to enterprise (versus consumer) investing in the early stage. This mirrors what we have seen in the public markets where enterprise software companies have done better in their IPO's than their consumer counterparts.
-Big tech companies and opportunities are being built outside the Bay Area. Companies like Kabbage in Atlanta, Qualtrics in Salt Lake, Snap in LA are all anchoring growing startup ecosystems. The talent that these companies attract and create will draw investors to look at early stage opportunities in these markets.”
2. Damien Cabadi, CFO at Spirit Asset Management
“Passive investments and robo-advisors will sustain their strong traction. Investment platforms will extend their market share because of their digital experience. And cost leadership will continue to be the main strategy in a highly commoditized market.”
3. Yaron Golgher, co-founder and CEO at I Know First Forecasting
“The two key trends shaping the sector are uncertainty and disruption. The former comes on the back of the continuous fears over tensions between the US and China, which makes the markets more volatile and pushes some investors to a more conservative portfolio. While there is no telling when exactly this will boil over, the second trend looks set to stay around for good. As new technology disrupts the traditional investment dogmas, all eyes are on AI-driven quant hedge funds and robo-advisors relying on signals identified in the dataflow rather than conventional investment strategies like fundamentals analysis.”
4. Bryan Stolle, founding Partner at Wildcat Venture Capital
“The IPO frenzy is unfolding in front of us, and I’m confident we’ll see more enterprise companies taking a front seat to the consumer as investors begin to favor investing in companies that are more capital efficient and offer greater stability.”
5. Mik Breiterman-Loader, CEO of Vestive
“Consumers taking things into their own hands and having an impact where they can. The political climate is divisive, and we've seen the past few years that many people wish to have an impact beyond their government. The desire to have investments that align with one's values is a powerful and infectious notion with those who don't agree with their government's actions. This is particularly true as the effects of climate change continue to appear, as well as Millennials grow into more influence in the working and investing world, and as Gen Z enters the workforce.”
6. Sandy Yong, Author of The Money Master
“One of the latest trends shaping investing this year is the introduction of the all-in-one ETFs. In the 90s and 2000s, we had mutual funds that offered a diversified portfolio of Canada, US, and International stocks and bonds.
However, to mimic that through ETFs would require that you purchase numerous ETFs. Now with these products offered by Vanguard, iShares and BMO, you can purchase this one fund and call it a day. These funds have low MERs and will rebalance on their own. This will help consumers to reduce their trading fees associated with balancing their portfolio. Vanguard offers the following:
– conservative fund (VCON): 40% stocks and 60% bonds
– balanced fund (VBAL): 60% stocks and 40% bonds
– growth fund (VGRO): 80% stocks and 20% bonds
– all equities fund (VEQT): 100% in stocks
Depending on your future goals, time horizon and risk tolerance, you can choose one of the above funds and invest through your investment accounts.”
7. Adrian Enache, CEO at Angels Den Funding
“Investing is becoming more and more sophisticated and technology-driven.
Nowadays everyone has access to know-how online, at any moment. While angel
investors are usually offered this as a free service, I believe that a clear shape is given by collective decision. We are seeing a trend of building micro-communities, thus obtaining collective intelligence and experience. We have witnessed this trend in our Angels Den Funding events such as Fintech, Tech or London Angel Club.”
8. Ben Fraser, VP of Finance at Aspen Funds
“One trend that continues to gain momentum is called “Impact Investing.” The idea has been around for a long time but has recently become more mainstream. Impact investing is simply an investment with a greater purpose. These investments seek to create beneficial societal, economic or environmental impact, while also generating a financial return. After the wake of the last recession, which was largely caused by excessive greed, investors want their investments to do more than pad the pockets of highly paid executives. These investments not only benefit society but can also provide attractive returns for investors.”
9. Stacy Caprio, founder of Fiscal Nerd
“2019 is being shaped by the imminent possibility of a stock market crash and general recession as people become more cautious with their investing money looking to put a higher percentage of their income in real estate, gold, fixed index annuities and other less-risky investments as opposed to the general market.”
10. Anatoliy Knyazev, Executive Director at EXANTE
“The opportunity for anyone to make their own investment decisions, put their money at risk, make mistakes and learn from them – that's what the crypto space has taught us in the past couple of years. Save for some limited crowdfunding options, the existing regulatory regime favours big well-funded players. Crypto disrupts the current market stance, with all the caveats true disruption implies.”
11. Izet Elmazi, Senior Portfolio Manager, Bristol Gate Capital
“Some trends shaping the industry include technological disruption bringing structural changes in business models, increasing transparency/regulatory requirements and reducing fees. The role of “big data” in financial, business and industry analysis will be inevitable.”
12. Ryan Vet, Entrepreneur and CEO of boon
“With regulations changing through the passing of the JOBS Act, just about anyone can now invest in private companies. Before, it was reserved to the wealthiest individuals, further deepening the wealth gap. For example, people invested in Menlo Ventures received a 93x return on theirinvestment in just a few short years in Uber. Every day people, like an Uber driver, put in the sweat equity but was unable to invest because more than likely they were not an accredited investor. Because of the JOBS Act, just about anyone can invest in private companies which will drastically change the landscape of some of these huge exits these unicorn companies have.”
13. Daniela Andreevska, Marketing Director at Mashvisor
“While real estate remains one of the top investment strategies in 2019 and beyond, real estate investing is definitely experiencing major changes due to technology. Real estate crowdfunding is emerging as a new popular trend in investing, attracting more and more investors every year. The main reasons for the growth of real estate crowdfunding are the fact that you can start investing with as little as $500, that you don't have to be actively involved in your investments, that you share the risks with other investors, and that you don't need prior knowledge and experience. The further development of real estate crowdfunding platforms will definitely be one of the leading technology trends with major impacts on the investing industry.”
14. Ruslan Gavrilyuk, co-founder and President of Kepler Finance
“I would like to note that retail stock market trading becomes more AI-driven. Currently more than 80%  of trading in the US is algorithmic (10 p.p. increase in comparison to 2016 ), while in emerging economies – more than 40%. Stock prices are more speculative driven rather than the book value and performance driven. Institutional investors put more thought into placing considerable investments given growing price fluctuations and are thoroughly looking for new uncorrelated assets.”
15. Patricia Russell, CFP, Investment Advisor and founder of FinanceMarvel
“Technology companies and traditional automobile manufacturers are venturing
into electric car manufacturing. Research conducted by JP Morgan shows that
demand for electric cars is expected to increase with sales reaching as high as 8.4 million units in 2025.
Another trend that's catching on is the sale of cannabis products. The market is hungry for cannabis products due to their perceived health
benefits. Investors know this and are pumping money into cannabis-related ventures. Experts predict that by 2025, the Cannabis market will reach $194 billion.”
16. R.J. Weiss, CFP, founder of The Ways to Wealth
“One of the biggest trends and challenges facing investors is that there are a greater number of freelancers in the workforce. As such, an account like a 401(k), which was supposed to help the everyday person save for retirement, is less and less available.
Freelancers have fluctuating income, as well as a host of other financial challenges that make their income not as consistent. It is much harder to save under these conditions but at the same time more and more important to provide both short and long-term financial security.”
17. Logan Allec, CPA and Founder of Money Done Right
“Consistent with the future of investing, I think right now we're seeing a push for greater accessibility and lower costs so that everybody — even if they only have $5 — can get into the market. So you have the investing giant Fidelity Investments recently introducing its two zero fee index funds, one that targets the returns of U.S. large cap stocks and the other that targets the return of the total U.S. stock market. These funds have no minimum investment and do not charge a fund management fee.”
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