There are some best places to invest in 2024 that investors should keep in mind. These locations are expected to be accretive for investors and may beat returns from investing in broad indices such as the S&P 500 or the Nasdaq. This is despite their recent rallies and signs of strength.
I like these best places to invest in 2024 due to be solid investment choices now and in the far future. People can park their cash in these investments and get solid returns, even on a risk-adjusted basis. It’s important to note, though, that these recommendations should be balanced with a healthy assessment of one’s risk profile, which means considering other alternate investments as well, such as bonds or uncorrelated assets to stocks.
So here are the best places to invest in 2024 that could keep one’s total returns high throughout this year and beyond. Don’t miss out on these suggestions to bolster your portfolio.
Cryptocurrencies
Bitcoin and Cryptocurrencies: Despite their volatility, cryptocurrencies like Bitcoin (BTC-USD) have become a popular investment for those looking for high-risk, high-reward opportunities. Their decentralized nature and potential for significant growth make them an attractive option for investors willing to weather the market’s ups and downs.
Looking forward to 2024, several predictions suggest Bitcoin could remain dominant and resilient, especially with the anticipated U.S. recession. Factors such as the launch of spot Bitcoin ETFs and the fourth Bitcoin halving expected in April 2024 could potentially boost Bitcoin’s price above significant thresholds.
Long-term price predictions for Bitcoin remain optimistic, with expectations of its value maintaining around the $150,000 mark by 2030. The increasing institutional adoption supports this outlook.
AI and Technology Stocks
Investing in stocks of companies leading the Artificial Intelligence (AI) revolution could be a wise choice. This includes giants like Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), and others in the Majestic Seven.
A report by Fidelity indicated that the tech sector’s rally last year was partly fueled by AI advancements, with semiconductor companies and cloud software providers being highlighted for their roles in AI applications. I expect that this trend will continue this year and beyond, making these investments highly accretive.
Aside from AI, the semiconductor sector, in particular, is spotlighted for its significance, with companies like Nvidia gaining attention for their GPU technologies essential for running and training AI models, but it is also equally important for blockchain stocks, gaming, and other growth sectors of the economy.
I don’t think AI is hype, and I also expect tech stocks to continue to outperform throughout this decade and even longer.
India
Investing in India offers exposure to one of the fastest-growing economies in the world. The country’s growing middle class and highly educated workforce make it a highly attractive option for investors, especially for those who are seeking international diversification into emerging markets.
Looking ahead, India’s economy is on track for significant growth, with projections indicating a GDP expansion of 6.4% in FY2023 and an increase of 6.7% in FY2024. This growth trajectory is expected to continue, with India potentially becoming the world’s third-largest economy by 2030, boasting a projected GDP of USD 7.3 trillion.
There are many sectors for investors to invest in India, which enhances its attractiveness. India’s digital infrastructure advancements, notably the “India Stack,” are broadening the consumer base and opening up large-scale opportunities across sectors like green energy, infrastructure, mobility, and technology.
Investing in Indian ADR shares, OTC shares, or broad-based thematic Indian ETFs could be a great way for U.S. investors to get exposure to this market.
Gold
Investing in gold has long been considered a safe haven in times of economic uncertainty. However, I also feel that having some allocation to the precious metal is a worthwhile choice for investors of all risk tolerances and time horizons. Not only is the metal uncorrelated to stocks, but it has also delivered solid results for investors over long periods.
Predictions for gold prices in 2024 vary, with some experts forecasting prices could soar to $4,000 per ounce due to interest rate hikes and recession fears maintaining market volatility.
Along with bonds, holding gold in a portfolio can be a great way for investors to diversify their portfolio along with getting solid returns. There are a number of ways investors can get exposure to the metal, such as through ETFs like the Goldman Sachs Physical Gold ETF (CBOE:AAAU), or through investing in gold mining stocks. I prefer buying ETFs like AAAU due to it affording more uncorrelated exposure to equities.
Real Estate Investment Trusts (REITs)
Real Estate Investment Trusts (REITs) allow you to invest in real estate without owning physical properties. They offer the potential for dividend income, as well as appreciation in value. These shares are staple in a retiree’s portfolio, but I feel that buying these shares early as part of a growth portfolio can also be accretive.
Furthermore, for this year, the Federal Reserve’s indication of nearing the end of its tightening cycle positions REITs for potentially outsized performance in 2024, with solid balance sheets likely enabling them to navigate economic uncertainty.
As for some particular REIT industries to invest in, data centers, in particular, are poised to benefit from the rise of artificial intelligence, which is accelerating demand for storage and interconnection sites. Meanwhile, the senior housing sector could see a boost from demographic trends.
Blue-Chip Stocks
Blue-chip stocks are a staple of many investor’s portfolios. These brands often offer consistent dividend payments and strong reputations, making them a safer bet amid the ups and downs of the market.
For 2024, certain sectors within the blue-chip category are expected to lead in terms of growth potential. The healthcare sector, for example, is poised for a rebound after lagging in earnings growth. Similarly, the communications services sector, driven by significant players like Meta (NASDAQ:META) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is predicted to continue its growth trajectory,
While it can be good to have some speculative bets, such as small caps and cryptocurrencies in one’s portfolio, blue-chip stocks continue to be the anchors that are relied upon by millions of investors worldwide, and there are plenty of good choices to choose from.
Renewable Energy Companies
With the global shift towards sustainable energy, investing in renewable energy companies can be both ethically rewarding and financially beneficial.
I feel that now could be a great time to initiate a position in these companies if one hasn’t done so already. Investment in the energy transition, including renewable energy, energy storage, and other low-carbon technologies, has hit new highs. Global investment in the energy transition reached $1.8 trillion in 2023, up 17% from the previous year.
The U.S. solar industry, in particular, is poised for robust growth, with utility-scale solar capacity additions in the first eight months of 2023 outpacing other generation sources. This growth is largely attributed to the demand for decarbonization by federal investments through acts like the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA).
Renewable energy is the future and it’s gearing up to be one of the most disruptive supercycles of our times. The valuations of many of these companies are also very cheap, making them prime investment targets.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.