Jump to content

Top investments to watch in 2024


MongiIG

1,246 views

Gold, Dow Jones, Nvidia, Rolls-Royce and Coinbase may be the top investments to watch in 2024. These investments have been chosen for their success in 2023 amid recent market news.

goldSource: Bloomberg
 

 Charles Archer | Financial Writer, London

Going into 2024, investors may be hoping for less instability and calmer growth. Whether stocks, bonds or commodities, virtually every asset class has seen significant volatility, driven by geopolitical instability alongside uncertainty over both inflation and the monetary policy sufficient to rein it under control.

Fortunately, the consensus seems to be forming that inflation will continue to fall, that interest rates have peaked, and that they will also start to slide downwards in 2024.

However, if the past few years have taught UK investors anything, it’s that predictions are based on known criteria. And after Brexit, the Johnson landslide, the covid-19 pandemic, the Ukraine War, Silicon Valley Bank, and the Truss mini-budget, it’s fair to say that investors will be on guard for the next ‘black swan.’

But while there may have been volatility, many investments have done very well in 2023, and may continue to do so in 2024. Five are listed below — but always remember that past performance is not an indicator of future returns.

Top investments to watch

Gold

Gold has historically served as the reliable ‘safe haven’ asset and inflationary hedge during times of severe economic stress, and this trend continued reliably in 2023.

For perspective, central banks purchased 1,136 tonnes of gold worth $70 billion in 2022, the highest amount since records began in 1950. This marks a notable departure from the trend of selling gold in previous decades, and the buying has continued in 2023.

The appeal of gold lies in its characteristic as an asset that is not tied to any specific issuer or government, providing diversification for central banks away from other traditionally safe assets such as the US Dollar or US treasuries — and this is especially pertinent as the US debt ceiling crisis rumbles on.

Gold has rocketed above $2,000/oz in 2023 and may continue to climb in 2024.

Dow Jones

The Dow Jones is well-known as the ‘blue chip’ US index, hosting 30 of the most prominent US stocks including Apple, Walmart and McDonalds. The index hit a record high today, rising above 37,100 points as investors cheered the more dovish tones set out by the Federal Reserve.

While inflation scarring may take some time to heal — and with the caveat that even blue chips carry some risk — there’s a reason why Warren Buffett argued in 2021 that ‘I have yet to see a time when it made sense to make a long-term bet against America.’

For context, the Dow has risen by 54% over the past five years, including the pandemic mini-crash and all the increased geopolitical tensions since. Of course, this flight to quality may reverse should risk appetite return.

Nvidia

Nvidia shares have been on a dizzying rally this year to a $1.2 trillion valuation. The semiconductor champion is clearly one of the most popular stocks of 2023 — though of course, popularity does not mean it is the best investment available.

The rally is a result of AI demand, spurred on by the release of the revolutionary ChatGPT. In Q3 results, Nvidia saw record revenue of $18.12 billion, up by 34% quarter-on-quarter, and by a whopping 206% compared to a year ago. A highlight was data centre revenue, which increased by 279% over the past year to $14.51 billion.

Founder and CEO Jensen Huang enthuses that ‘NVIDIA GPUs, CPUs, networking, AI foundry services and NVIDIA AI Enterprise software are all growth engines in full throttle. The era of generative AI is taking off.’

Of course, with a price-to-earnings ratio of 63 and the US government imposed export bans on certain chips to China, there are some risk factors to consider.

Rolls-Royce

Up 205% year-to-date to over 300p, Rolls-Royce shares have been the star performer of the FTSE 100, after CEO Tufan Erginbilgic delivered a stunning turnaround in his first year in charge.

For fairness, he came on board at a fortuitous time; soaring post-pandemic travel demand has increased flying hours, the Russia-Ukraine war has seen defence spending rise, and the rising political importance of energy independence — consider the modular nuclear reactors — are all macroeconomic catalysts for the business that were out of his hands.

But the growth could be set to continue. With a slew of banking giants upgrading their targets in recent days, Fitch Ratings has upgraded Rolls to BB+, a step towards regaining its all-important BBB investment grade status, lost during the pandemic.

For context, the FTSE 100 stalwart plans to deliver operating profit of as much as £2.8 billion and free cash flow of up to £3.1 billion by 2027.

Coinbase

Coinbase shares have risen by nearly 350% year-to-date after a disastrous 2022 saw much of the company’s value wiped out. For investors looking for exposure to the cryptocurrency asset class, but without taking ownership directly, the exchange could be attractive.

Coinbase is the largest crypto exchange in the US and may be viewed as the ‘picks and shovels’ crypto stock.

For context, Bitcoin — inarguably the most well-known cryptoasset — has risen by over 150% year-to-date, and BlackRock — the world’s largest asset manager — is revising its spot Bitcoin exchange traded fund to enable major banks such as Goldman Sachs and JP Morgan to participate in the market more easily despite regulatory restrictions preventing them from keeping direct holdings.

Naturally, Bitcoin is an unregulated asset that is viewed by many as both volatile and extremely high risk.

Trade and invest in over 17,000 UK, US and global shares from zero commission with us, the UK’s No.1 trading provider.* Learn more about trading or investing in shares with us, or open an account to get started today.

*Based on revenue excluding FX (published financial statements, October 2021).

 
 

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

1 Comment


Recommended Comments

Here are some of the top cryptocurrency investments to watch in 2024.

- Ethereum (ETH): Ethereum is the undisputed leader in smart contracts and decentralized applications (DApps), enabling a vibrant ecosystem of developers, users, and projects. Ethereum is undergoing a major upgrade to Ethereum 2.0, which will improve its scalability, security, and efficiency. Ethereum also supports the booming sectors of decentralized finance (DeFi) and non-fungible tokens (NFTs), which offer new opportunities for innovation and value creation. Ethereum is the second-largest cryptocurrency by market capitalization, after Bitcoin, and has a loyal and active community.
- Bitget (BGB): Bitget token is the native token of BGB, one of the fast growing cryptocurrency exchange by trading volume and user base. BGB offers various benefits to its holders, such as discounts on trading fees, access to exclusive features, and participation in governance. BGB is the top performing exchange token atm

- Arbitrum (ARB): Arbitrum is a leading layer 2 solution for Ethereum, which aims to improve its scalability and usability. Layer 2 solutions are protocols that run on top of the main Ethereum blockchain (layer 1) and process transactions off-chain, reducing congestion and fees. Arbitrum uses a technique called optimistic rollups, which allows users to execute smart contracts at high speed and low cost, while maintaining the security and decentralization of Ethereum. Arbitrum has attracted many prominent projects and platforms, such as Uniswap, Aave, and Chainlink, and has seen a surge in adoption and activity. Arbitrum is one of the most promising layer 2 solutions for Ethereum and has the potential to boost its growth and dominance.
- Solana (SOL): Solana is one of the fastest and most efficient blockchains in the market, boasting over 50,000 transactions per second and sub-second finality, at a fraction of the cost of other blockchains. Solana achieves this performance by using a novel consensus mechanism called Proof of History, which leverages a high-frequency verifiable delay function to create a historical record of events. Solana also supports smart contracts and DApps and hosts a growing number of projects in various domains, such as DeFi, NFTs, gaming, and social media. Solana is the sixth-largest cryptocurrency by market capitalization and has a strong team and vision.

These are some of the top cryptocurrency investments to watch in 2024, based on their technology, innovation, adoption, and potential. However,
this is not financial advice, and investors should do their own research and due diligence before investing in any cryptocurrency.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...
us