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Here’s where to invest your money in 2022, CNBC’s top advisors say

Of course, the volatility of this market also represents a significant risk. This type of investment will therefore be reserved for investors with a high tolerance for risk and speculation. What really puts gene editing on the map as a hot investment trend for 2024 is the approval of Casgevy (formerly exa-cel) in the U.K., i.e., the very first approval anywhere for a gene-editing drug. With label-expansion opportunities and approvals awaiting in other regions, including the U.S., this gene-editing treatment developed by Vertex and CRISPR has the potential to top $1 billion in annual sales.

  • Usually, bonds do not fluctuate as much in price as stocks and hold their value better than stocks during market volatility.
  • The boom in semiconductors has legs far beyond today’s supply crunch.
  • Environmental, social and governance or ESG refers to investments that seek both financial return and social/environmental good to bring about social change.
  • Treasury Bills or T-Bills are some of the safest investments in Canada.
  • An rising economic tide will typically lift most cyclical boats, and that includes materials stocks such as DuPont de Nemours (DD, $80.45).

Time horizon determines what kinds of investments are more appropriate. Rental housing is a good investment for long-term investors who want to manage their own properties and generate regular cash flow. These funds can be purchased with very low expense ratios (how much the management company charges to run the fund) and they’re some of the best index funds. Analysts see more than 60% upside potential out of JD shares in 2022, making it potentially one of the best international stocks to invest in – but extreme caution is warranted.

Time Horizon

But longer-term demographic trends and a movement toward deglobalized trade and supply chains “may coalesce in an extended period of steadily rising prices,” conclude Conference Board economists. The run-up in prices is a result of surging demand from consumers with plenty of savings to spend colliding with stubbornly persistent supply-chain bottlenecks. U.S. companies recorded a brilliant third quarter, with an earnings growth rate for companies in the S&P 500 expected to be 41.5% when all the reports are tallied, according to earnings tracker Refinitiv. Nearly 81% of companies beat analysts’ estimates – in a typical quarter, only 66% do so.

  • High-yield savings accounts keep your money liquid while generating a little return.
  • “We believe SONO likely provided somewhat conservative FY22 guidance as it weighs the impacts of a challenging supply to its outlook,” he says.
  • On top of that, Tesla will be opening two new gigafactories in 2022, in Texas and Germany, and this should increase its production greatly.
  • Stocks do well when the Federal Reserve keeps interest rates low, but the days of the Fed’s zero interest rate policy (ZIPR) are numbered.
  • Younger investors might not have a large initial investment if they are just starting their careers or are also paying down a mortgage.

The puzzle pieces are also in place for storage stocks to rebound nicely in 2024. Companies like Western Digital (WDC 1.05%) are well positioned to take advantage of the growing storage needs presented by data-center expansion. A fourth seemingly invincible trend to invest $1,000 in for next year is the data-center economy.

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I welcome the transition to renewables and sustainable wind and solar and others. If you want the markets to force the transition to renewables, that could be the best way for it to happen. Being a relatively new investment option among mainstream investors and institutions, cryptocurrencies are a high-risk, high-reward investment. What’s more, there are always new coins coming out or older ones getting the spotlight every now and then. Because of that, the rate of return could be way higher than investing in stocks.

Invest in yourself

For now, solid economic and earnings growth seem the most likely model for the near future, says Yardeni. Roku is another growth stock that’s been under the pump in recent months. ROKU stock is down 50% from all-time highs, but it has also returned over 900% to investors since its IPO in late 2017.

Buying individual stocks, whether they pay dividends or not, is better suited for intermediate and advanced investors. But you can buy a group of them in a stock fund and reduce your risk. Dividend stock funds are a good selection for almost any kind of stock investor but can be better for those who are looking for income. Those who need income and can stay invested for longer periods may find these attractive.

Step 6: How Much Time Do You Have for Investing?

In 2021, however, value stocks started making some headway against growth stocks, and some analysts feel 2022 could be a year when value is preferred over growth. Rising interest rates and inflation tend to devalue growth stock multiples, so value might have its day in the sun if those trends continue. Adjustable-rate bonds have floating rates that automatically change based on current interest rates. For example, if the Fed raises short-term rates from 0% to 0.50%, a short-term adjustable bond will see its rate automatically bump up by about the same amount. Investors in these types of securities actually look forward to rate increases by the Fed, as it raises the amount of income they earn. Demand for homes still far outstrips supply, there’s a lot of cash in the economy between expanding growth and stimulus payouts, and rising inflation may keep prices rising.

Dividend-paying stocks are one of the more popular safe investments for Canadian investors. Fixed annuities are some of the safest long-term investments in Canada. So, rather than just holding your money in a traditional savings account, it may be time to explore some of the safest investments in Canada. When stocks are not in a bull market, lower-risk investments that still provide high rewards become more attractive. However, if you are still considering choosing a mutual fund over an ETF, I made a list of some mutual funds with lower fees here.

With many top economists fearing a recession could be right around the corner, some investors may think there’s no good place to invest. But extend your investing horizon and the rest of 2023 could set you up for good returns later on. From a price-target standpoint, UAA is one of the best stocks to invest in for 2022; analysts’ average price target issued over the past three months is more than $32, or 82% upside from current levels.

High-interest savings accounts have seen higher rates due to the increase in online banks in Canada, which offer much higher rates than traditional banks (often over 100 times more). The health of the American consumer is a big part of the story, says Ross Mayfield, investment strategy analyst at securities firm Baird. In recent years, several Canadian growth stocks have outpaced the broader markets. Investing in growth stocks can help you generate enviable returns over the long term, provided you pick the right companies. You need to identify companies that enjoy a competitive advantage, have a strong customer base, and are part of a total addressable market. There is currently $14 trillion of market cap globally in internet companies.

These may be low-rated—often known as non-investment grade or junk bonds—and come with higher interest rates in exchange for the added risk. Most brokerage houses offer core mutual funds focused on growth stocks and are designed to ideally match or beat the S&P 500. By investing in growth-minded mutual funds or ETFs, you’ll likely gain exposure to some of the largest and most well-performing public companies. They can also provide all or some major investing assets like stocks, ETFs, mutual funds, and bonds.

Jennifer Kalkhoven

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