While it is impossible to predict market movements with absolute certainty, 2022 presents an interesting range of investment opportunities for global expats. Post-pandemic economic recovery, emerging tech and interest in green enterprise combine to offer a variety of potential diversification options, each, of course, with varying risks and rewards.
Let us highlight some of the fastest-growing investment sectors available in the year ahead, and why they are gaining traction with investors around the world.
Sustainable Energy
Renewable energy is a promising area, with far greater integrations of planet-friendly approaches to decarbonising and switching to greener alternatives expected as the year moves forward.
Driven by the UN Paris Agreement, the sector requires substantial financial investment to reach goals to mitigate average global temperature rises to below 2 °C by 2050 and 1.5 °C by 2100. Research and testing in sustainable energy don’t stop there.
The UAE has announced a nationwide initiative to reach net-zero status by 2050, perhaps a sign of more to come from the Middle Eastern region. Clean energy is growing at a rapid pace, with aims to:
- Reach quantifiable objectives to halt climate change.
- Increase investment in line with ethical investing trends.
- Improve global job creation and human health.
Sustainability is a buzzword across the board, with around 42% of investors now selecting funds based on environmental, social and corporate governance (ESG) principles.
Green Energy Investment Options
There are multiple ways to invest in green energy, such as:
- Investing directly in renewable energy projects, with schemes such as the development of solar farms or solar panel projects.
- Select exchange-traded funds (ETFs), a collective of clean energy stocks that track market performance.
- Purchasing stocks in renewable energy companies, for example, those producing wind turbines or solar cells.
The optimal investment strategy depends on your short-term and long-term goals, and the likely returns available. It is also important to consider the overall diversification of your portfolio and your appetite for risk exposure.
To explore the options further, please get in touch with your nearest Chase Buchanan office, or download our Offshore Investment Guide to discover alternative investment routes you may be interested in as an overseas expat.
Investment Prospects in the Cybersecurity Sector
Another strong contender is the cybersecurity space. Worldwide spending grew 13% in digital security during 2021, an accelerated growth rate compared to 8% the previous year.
Although some software stocks took a hit at the start of 2022, cloud security remains a priority for corporations, and forecasts indicate an anticipated further boost in spending of 11% in 2022. There is a similarly long list of possibilities to invest or expand your portfolio into this area, with demand high in:
- Public cloud access applications.
- SaaS for businesses and finance.
- Business intelligence and analytics.
- Computer network switching.
Rollouts of 5G, broader usage of AI and machine learning, and developing technologies including blockchain are all growing within governments as well as corporations, with innovation high on the list of priorities.
Post-Pandemic Cloud Security Demand
The pandemic has contributed to rapid maturation in cloud security, as millions of people work from home and require digital security products to support confidential communications and data transmissions. Shifts to remote work have significantly accelerated expansions in cloud-based network security, with innovations referred to as SASE: Secure Access Service Edge.
Virtual private networks (VPNs) have also increased in popularity, used to prevent location tracking and defend against phishing campaigns, malicious software control and identity access management. Cloud technology remains a disruptor, which makes it an opportunity and a threat, with the potential for increased mergers and acquisitions.
Smaller vendors tackling the same 2022 market challenges are unlikely to keep pace, with the most substantial investments making their way to larger corporations developing more capable security suites.
If you are new to technological investments, we would recommend reading our Investment Scams Guide since digital assets are prime targets for attempted investor fraud.
Infrastructure Spending and the Potential for High-Growth Investment
Our third area of interest relates to infrastructure spending, covering a scope that includes investment in:
- Broadband access
- Electricity grid upgrades
- Land transportation
The $1.2 trillion US Infrastructure Spending Bill, passed in 2021, will be implemented this year, with fixed-income investment potential and equities throughout the targeted spending areas.
In the EU, the economic recovery is also being front-loaded with spending, with over €1 billion invested in a bloc-wide Green Deal to deliver trans-European energy networks.
Further investments of €300 billion in digital technology, climate initiatives and infrastructure developments are expected through the Global Gateway programme to strengthen EU supply chains and boost trade capacity.
These global spending plans mean that advances are expected in communication services, energy (including green energy, as we mentioned earlier), materials, industrials and utility sectors.
Bespoke Financial Advice in Selecting 2022 Expat Investment Opportunities
These investment areas have excellent potential for growth in the year ahead – but as always, the right products, funds, risk exposure and investment terms are personal decisions that can have a considerable impact on your financial future.
Chase Buchanan always recommends seeking independent wealth management guidance before selecting investment products to analyse the potential returns and establish whether there are more competitive opportunities available elsewhere. We’d also suggest visiting our previous publication, explaining the Six Tips to Prevent an Investment Portfolio Plateau if you are keen to keep developing your portfolio, and looking for strategic options to prevent returns from slowing.
Any new market or investment space carries a varying level of uncertainty, so a portfolio review is normally the best way to quantify whether current assets are underperforming, presenting a potential to reinvest in an alternative scheme with a positive outlook. Please contact Chase Buchanan at your convenience for tailored advice in selecting the right 2022 expat investments aligned with your broader goals and expected returns.