Investing can be confusing at best — and a total minefield at worst. Today’s hot stock might be in the trash tomorrow, and it’s easy to miss the next unicorns that are just about to break out. Thankfully, GOBankingRates spoke with two self-made millionaires to learn the trends they’re watching in the investment arena.
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Here are the investing trends that self-made millionaires are watching in 2024.
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“Safe” Investments? Not So Fast
Sure, high-yield savings accounts and bonds are looking pretty tempting these days. But you may want to hold your horses, according to Steven Keys of Trip Of A Lifestyle.
“Interest rates have risen sharply since 2022, leading to a little more excitement lately about ‘safe’ investments like high-yield savings accounts and bonds. While it’s true that you can get an FDIC-insured savings account with a guaranteed 4%-5% annualized return in 2024, it’s important to note that slightly riskier investments, like stock market index funds, are still likely to outperform in the long run,” he said.
Keys warned that these “guaranteed” rates might pull a disappearing act faster than a magician’s rabbit.
“It’s also important to realize that the ‘guaranteed’ interest rate on a savings account isn’t guaranteed forever. When rates fall, savings accounts will start to pay less interest, and falling rates generally come along with higher asset prices — meaning that other investments may become less attractive at the same time that savings accounts become boring again,” he said.
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AI: The Smarty-Pants of Investing
Artificial intelligence (AI) is taking over faster than you can say “Siri, invest my money!” Chrissy Grigoropoulos, Esq., the brains behind The Grigoropoulos Law Group PLLC and author of “Ladyshark: How to Become a Millionaire in Your 30s,” is betting big on tech.
“I recommend purchasing stocks like Nvidia (NVDA), which just became the world’s most valuable company and is projected to become even more profitable as AI becomes commonplace,” she said.
E-Commerce and WFH: Still Raking In the Dough
Think the online shopping craze is over? Think again. Grigoropoulos is still all-in on digital darlings.
“Amazon and Shopify are still solid bets in the online shopping and delivery services sector, as is Zoom (ZM) as remote work has been standardized and is especially popular in the summer months,” she said.
EVs: The New Road to Riches?
Electric vehicles (EVs) are heating up, and Grigoropoulos has her eye on an up-and-comer.
“In the electric vehicle arena, Rivian Automotive Inc. (RIVN) is an affordable alternative to Tesla Inc. stock, as consumers are growing attentive to their chic car offerings,” she said.
A Consistent, Long-Term Strategy
Investing in 2024 can be a bit of a roller coaster, but these self-made millionaires have some wise words to share.
“Rather than chasing trends, it’s better to have a consistent, long-term investment strategy guided by your personal risk tolerance,” Keys said. “Regardless of present interest rates, the more money you shift into productive assets like stocks and rental real estate, the higher your portfolio is likely to perform over a lifetime. Just remember — that extra return comes with higher risk.”
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This article originally appeared on GOBankingRates.com: I’m a Self-Made Millionaire: These Are the Investing Trends I Am Watching in 2024