The past two years had been anything but smooth sailing for businesses and economies. When the COVID-19 pandemic took the world by storm, companies spanning several industries plunged. Despite economic headwinds, 2023 offers fertile ground to “Secure Your Funding Round” by targeting the right investors with a data-driven pitch and a watertight business plan. The Coronavirus’ rapid spread forced governments to close off their borders to other countries and implement preventive measures to mitigate its proliferation. 

Consequently, all mandated safety protocols—such as lockdowns, community quarantine, and social distancing—severely impacted economic activities. Due to operational and financial turmoil, many retrenched countless employees, global supply chains weakened, multiple businesses closed, and investors lost hefty amounts. 

Forecasts to Expect in the Foreseeable Future

As businesses navigate their way back to financial recovery and economic stability, experts predict some investment hurdles and increases this 2023. 

According to Forbes Advisor, there is an “86% chance that Fed interests will rise another 1% by June 2023.” In addition, Wall Street analysts also predict S&P 500 earnings to dip by 1.7% in the last quarter of 2022, only to make a 1.7% bounce back in the first quarter of 2023. 

On the bright side, businesses can look forward to the stock market’s progression. Come 2023, lower inflations are expected, along with a halt in interest rate spikes, which should aid in business earnings rebound. 

As the world comes back to pre-pandemic levels, economies are starting to return to where they were. Some trends are even showing the emergence of new technologies and investment opportunities. However, some also provide cautionary reminders. While 2023 has passed, consider “Invest in evergreen Small Business Ideas for lasting success in 2024 and beyond.”

Here are some investments you may want to consider and trends to watch out for in the coming year.

Profitable Investments to Consider in 2023 

1. Savings bonds 

During economic recessions, savings bonds are among the safest investments. They are typically low-risk. Savings bonds provide investors with many advantages. Some benefits this investment can give you are:

• a secure source of income from interest payments before maturation,
• helps you earn predictable returns, and 
• helps conserve capital. 

Furthermore, savings bonds, especially Series I bonds, provide higher returns than most high-performing stocks.

This bond is also great for business owners seeking additional funding for cash flow operations or future investments. Series I savings bonds are ideal to acquire since you can hold them at a high rate of 6.89% until April 30, 2023. Exploring different Types Of Investment in 2023 can help you build a well-diversified portfolio suited to your financial goals and risk tolerance. Although you cannot liquidate these bonds immediately after purchase, the returns they provide are worth the wait. 

2. Alternative investments 

While there may be potential economic challenges to surmount, that does not mean there are no ways to work around them. In fact, 2023 looks favorable as alternative investments are making their way to investor portfolios. 

Regardless of your income and risk tolerance, setting aside extra allocations for alternative investments is your financial safety net. There are several types of investments you can choose from, such as 

• private equity funds, 
• hedge funds, 
• venture capital funds, and 
• real estate. 

Each has pros and cons, so picking the ones suitable for your investing capacities is best.

Moreover, alternative investments can give you several benefits, such as low correlation to traditional asset classes, higher returns, diversification, and lower volatility. As such, the selection of assets makes them notable investment choices if you are a beginner. 

3. Renewable resources

Companies all over the globe are pushing for environmental sustainability through renewable sources. Supply chain issues have become prevalent since the COVID-19 pandemic interfered with operations. But 2023 is a window for electric vehicle and solar panel manufacturers to ramp up their production. 

Businesses are at an advantage as the world steadily climbs back to an economically stable position. There is an opportunity to establish new storage systems for electric vehicles and batteries. This venture opens up the electric vehicle market to other competitors that can dominate the likes of Toyota and Tesla. 

With that said, investing in businesses dabbling in renewable resources can be an excellent opportunity and a great addition to your portfolio.

Trends to Keep an Eye Out for in 2023

1. A cryptocurrency rebound

2022 was a frustrating year for investors, especially those focused on crypto. According to Reuters, “the price of bitcoin has dropped 65% since the start of the year, the cryptocurrency Luna suffered a total collapse in value, and crypto exchange FTX went from buying Super Bowl ads to crash landing into bankruptcy.”

Emerging from the COVID-19 pandemic is a tremendously tricky goal. However, investors should look forward to what 2023 has to bring. There is a chance for cryptocurrencies to make a comeback by attracting investors with cash reserves and through the Fed’s central bank digital currency (CBDC) project.  

In that case, always stay updated on cryptocurrency news. Doing so will help you plan your next move immediately if something goes awry and cut further losses.

2. The entry of robo-advisors 

As we go deeper into the future, technological advancements become more prominent. You can even include investment tools. Robo-advisors designed with algorithm-driven investing are in talks for implementation in 2023.

The beauty behind robo-advisors is that they are not just low-cost. They also offer various services, such as automatic rebalancing and tax-loss harvesting with financial advisor access. 

Additionally, robo-advisors charge fees lower than traditional advisors. And with the current situation, you may want to leverage this benefit as you determine how best to diversify your portfolio and mitigate risks.

3. A persistent bear market 

Stocks have plummeted over time as the COVID-19 pandemic worsened. Although stocks are gaining traction again, they are not in the best position yet since another bear market occurred in June 2022.

Bonds typically ease the pressure a bear market causes. But an increase in interest rate hikes has led to a crash in bond yields and stock prices. This situation has severely affected the 60/40 portfolio during the third quarter of 2022, leaving many wondering whether they should remain or shelf it. 

Investors will need more than equities and fixed income to combat unpredictable markets 

to make inflation more manageable. However, investors can still opt for stocks with several other investment types to safeguard against the high stakes.

Making Wise Investment Decisions in 2023

The world took a turn in 2020 when the COVID-19 pandemic struck, resulting in businesses and economies spiraling out of control. However, not all hope is lost. There are still ways to prepare for 2023. Other investments are worth looking into, such as saving bonds, robo-advisors, and alternative investments to keep you financially afloat.

Every step counts in ensuring you meet as many investment goals as possible. The most important thing is to focus on investment planning so that your 2023 investment goals are as secure as possible.