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Diversifying Your Investment Portfolio: Preferences Between Traditional Assets And Emerging Trends People Have

Picture of Alex Dove
Alex Dove

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Many investors are now looking at investment based on emerging trends and preferences rather than completely from a return point of view. In the olden days, people used to invest to get more bang for the buck and was usually one on traditional assets like gold or real estate.  As time went on, people started investing in more flexible assets like shares, bonds, mutual funds, ETFs, etc. Now in this trend of blockchain and cryptocurrencies, we are seeing how many activities are influencing investments in crypto, virtual real estate, and more. This means as technology continued to evolve, the preferences of people changed and so did their investment choices. In this blog, we are going to look at the various customer preferences of portfolio management between traditional assets and the emerging trends people have in this context. 

Gaming Creates New Favorites

When it comes to creating new trends, the gaming industry has always led first. Gaming has completely changed the way people look at the financial landscape in current days. Of course, gaming is not a part of investment decisions but as an innovative field, it sends signals to people about what are trendy financial assets to pay attention to. Let’s explain this. Today, crypto is the most popular payment option since it offers many advantages like convenience, ease of use, speed, security, and global accessibility. But people couldn’t be convinced of its reliability unless the business environment proves its value. So, when we see that many gaming platforms offer varieties of online blackjack, poker, and pokies with crypto, it’s not a surprising tactic anymore. As a result, many gamers now go for crypto pokies instead of traditional slot games and this gave a fast boost to their popularity. When investors analyze the trends thoroughly, the shift from usual games like slots to highly digitized versions of crypto pokies, it’s not hard for them to realize that in the future, cryptocurrencies will have promising capabilities of growth and expansion. Does this influence investment decisions in crypto? Perhaps.

Embracing Green Investments

With the world becoming more sustainable, green investments are getting much more popular. They are mostly available in the form of green bonds, renewable energy projects, or green ETFs.They have gained traction due to the high returns and high environmental impact they have in the world. There is also a report from Bloomberg showing how the green bond market exceeded $400 billion in the first 3 quarters of 2023 which shows its rapid growth. Many investors are now changing their investment preferences completely from a returns perspective to an environment-friendly perspective. This is why there are increasing investments in popular sectors like EVs, sustainable agriculture, and carbon credit trading. Investments in solar panels can provide financial benefits, as highlighted by Investopedia, including reduced utility costs and potential tax credits, which contribute to their overall value growth.

The Rise Of Tokenized Real Estate

Tokenized real estate is also growing due to the influence of blockchain and influencers spreading its message. Investors can buy a fraction of the real estate through the blockchain market in the form of tokens. This means lower entry barriers for individuals who are looking to invest in high-value properties with less capital. The global real estate value is over $280 trillion so there are more opportunities for investors in this niche.  Tokenized real estate is much more attractive to the millennials and Gen Z side of this generation since they can easily access the market by creating an account and holding on to as many tokens of real estate with whatever capital they have. This means steady rental income and capital appreciation even with a small amount. Even though real estate itself is a popular choice among investors to increase their net worth, the integration of blockchain into this asset has made the entire system more simple and accessible. 

Exploring NFTs

Another investment that completely gained traction because of its large influence back in the COVID period is non-fungible tokens or NFTs. It was very popular since it gave huge returns in less time. For example, a digital collection of the artist Beeple’s “Everydays: The First 5000 Days” was sold for over $69 million in an auction.  This makes some people think that similar assets are more speculative than long-term investments. There are many limited-edition NFTs created by influencers and with the ongoing hype, their values are almost increasing day-bay-day. Investors can look into these opportunities and hold on to them to get exclusive perks and get huge returns in the process.  They were especially popular back in the COVID-19 period and included assets like digital art, music, collectibles, and virtual real estate. The NFT market has become a multi-billion company which shows its demand and value. NFTs also provide some form of value or utility other than its asset value like exclusive entries to events, access to communities, or other perks. 

Final Thoughts

We can see that the latest trends and influencers are what change the investment choices of individuals these days, and that too from traditional assets to more digitalized investments. All these show that people prefer their investments in a much more short-term approach and digital versions that align with current trends than going for the same old investments in land or gold. 
Picture of Alex Dove
Alex Dove

Alex is a stock market enthusiast since the year 2010. He studied finance as a major in his college and worked with Fidelity Investments Inc for 4 years. Alex now writes for FintechZoom and runs his own consultancy making excellent returns for his clients. You may reach Alex at pr@fintechzoom.io