It was a disastrous year for equity investors in 2022. The worst year since the 2008 stock market rout. The S&P 500 benchmark index lost 20 per cent, the Dow sank 18 per cent and the Nasdaq fell a staggering 33 per cent, as all sectors ended in the red in 2022, with the sole exception of energy.
Bond markets also declined by 12 per cent while a whopping $2 trillion was wiped from the global cryptocurrency market.
Stock market pundits are predicting more pain in 2023 before the bleak scenario improves in the second half of the year.
It is difficult to predict with any certainty what the top investment trends will be, as the investment landscape is constantly changing and can be influenced by a range of factors.
However, here are some alternative trends that could dominate the investing space this year.
Investing for good
After gaining mainstream attention in recent years, the environmental, social and governance (ESG) investing trend is expected to become more popular in 2023 — and beyond.
Sustainability has become a major focus of ESG investing as investors seek to align their investments with their values and prioritise companies working to address environmental and social issues.
“The US Senate’s passing of a sweeping $430 billion bill to help fight climate change underscores why every investor needs exposure to ESG investments to build wealth over the long term,” says Nigel Green, chief executive and founder of deVere Group.
Global ESG assets are on track to exceed $53 trillion by 2025, according to Bloomberg Intelligence, representing more than a third of all assets under management.
The trend is driven by investors who want to not only generate financial returns, but also make a positive impact on the world. Increasingly, they are demanding greater transparency from companies around ESG credentials of businesses.
This includes the disclosure of information about a company’s environmental and social impact, as well as its governance practices.
Mainstreaming of crypto
There's been a relentless steam of negative cryptocurrency headlines over the past year. Scandalous cases of fraud related to cyber crimes and algorithmic glitches conspired to bring about a collapse that resulted in the value of the global cryptocurrency market cratering from its peak of $3 trillion in November 2021 to under $1 trillion by the end of 2022.
However, blockchain enthusiasts insist the cryptocurrency story is far from over. They expect a comeback of digital currencies in 2023, although with some regulatory protection.
“The crypto winter will thaw in the spring of 2023, when inflation will have peaked and central banks [will start to] unwind their rate hikes,” says Mr Green.
Investors can expect cryptocurrency to remain in the news as virtual currencies continue to gain mainstream acceptance.
Of particular interest is the development of decentralised finance (DeFi), the fastest-growing area of the blockchain economy.
DeFi refers to financial applications built on blockchain technology that operate without a central authority such as banks or brokers. This trend is expected to continue to grow this year as more people turn to DeFi instruments, including borrowing and lending to trading and insurance.
The growth of non-fungible tokens is another sub-theme to keep a close eye on. NFTs are unique digital assets that are stored on a blockchain and can represent a range of assets such as art, collectibles and even virtual property.
The crypto winter will thaw in the spring of 2023 when inflation will have peaked and central banks [will start to] unwind their rate hikes
Nigel Green,
chief executive and founder, deVere Group
One of the most prominent developments that the cryptocurrency market can expect this year is regulatory clarity.
Cryptocurrencies have been largely unregulated for years, but we could have increased regulatory oversight this year, which could help to increase investor confidence and fuel institutional interest, paving the way for further mainstream adoption of cryptocurrencies.
Booming technology sector
Notwithstanding the annihilation of technology stocks in 2022, the technology sector has been a strong performer in recent years.
There is little doubt that through and beyond the continuing macroeconomic headwinds, the sector will continue to grow, driven by factors such as increasing adoption of new technology and an ecosystem of products and services built around them.
The global push for sustainability serves to bring a sharper focus on technology companies that are working to address these issues. This could make environmentally focused technology companies attractive to investors.
In light of recent high-profile cyber crimes, the market for cyber security is also expected to continue to expand this year.
Growing incidents of cyber attacks are forcing corporations and governments to invest in protective measures. As a result, cyber security companies could expect increased investor interest.
Another area of growth is the artificial intelligence market. Rapid advances in AI technology are boosting the adoption of AI-powered products and services across industries ranging from cars to health care and aerospace.
“As cost of living eases and global growth picks up pace throughout 2023, investors will be seeking to increase their exposure to growth stocks,” says Mr Green.
“These are stocks that grow at a rate higher than the market average, typically tech stocks.”
There’s hope in health care
The global pandemic galvanised the healthcare sector and sparked both medical and technological innovation.
However, medical science has taken major strides in other critical illnesses such as cancer, diabetes and cardiovascular diseases.
Drug makers have been working on providing therapies and treatments, launching a steady supply of blockbuster drugs. Healthy annual revenue generated from these drugs helps pharmaceutical companies to keep the pipeline for new treatments humming.
Digital health technology, such as electronic health records, telehealth platforms and mobile health apps, have the potential to attract greater investor interest.
The part investors may find particularly reassuring is that few sectors are as immune from global political or economic uncertainty as health care.
Predictable cash flow and revenue make healthcare companies a sensible choice for investors.
Green energy sources — in pictures
Renewed push into clean energy
As the world continues to pivot towards a cleaner future, the demand for renewable energy sources could continue to grow.
Factors such as greater government support, new policy initiatives and the declining cost of technology will continue to drive the world towards renewable energy.
With more renewable energy production, there is a growing focus on developing technology that can store excess energy. This could make investments in renewable energy storage companies a solid contender for investors.
There are particularly attractive opportunities in the solar and wind energy market.
Solar remains the fastest-growing renewable energy, representing more than half of the renewable capacity installed internationally.
The market for solar energy is expected to jump to $293 billion in 2028, from $184 billion in 2021, as the cost of solar energy continues to plummet and more countries adopt it as a key part of their energy mix.
The offshore wind energy market has also grown steadily in recent years.
Global installed offshore wind capacity is projected to rocket to 630 gigawatts by 2050, from 40 gigawatts in 2020, creating revenue opportunities for wind farm operators.
Sustained growth in electric vehicles is another important component of the transition to a low-carbon future.
As EV adoption grows, car makers leading the green mobility revolution are becoming increasingly attractive.
It is worth noting that these are just a few potential trends to consider. As with any investing decision, always do your own research to assess the risks and potential returns of any investment before committing your money to it.
Hotel Silence
Auður Ava Ólafsdóttir
Pushkin Press
Director: Laxman Utekar
Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
Rating: 1/5
The Book of Collateral Damage
Sinan Antoon
(Yale University Press)
'HIJRAH%3A%20IN%20THE%20FOOTSTEPS%20OF%20THE%20PROPHET'
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A State of Passion
Directors: Carol Mansour and Muna Khalidi
Stars: Dr Ghassan Abu-Sittah
Rating: 4/5
Why seagrass matters
- Carbon sink: Seagrass sequesters carbon up to 35X faster than tropical rainforests
- Marine nursery: Crucial habitat for juvenile fish, crustations, and invertebrates
- Biodiversity: Support species like sea turtles, dugongs, and seabirds
- Coastal protection: Reduce erosion and improve water quality
MATCH INFO
Uefa Champions League, last 16, first leg
Liverpool v Bayern Munich, midnight (Wednesday), BeIN Sports
The biog
Name: Abeer Al Shahi
Emirate: Sharjah – Khor Fakkan
Education: Master’s degree in special education, preparing for a PhD in philosophy.
Favourite activities: Bungee jumping
Favourite quote: “My people and I will not settle for anything less than first place” – Sheikh Mohammed bin Rashid.
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HAJJAN
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Countries recognising Palestine
France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra
EA Sports FC 25
Developer: EA Vancouver, EA Romania
Publisher: EA Sports
Consoles: Nintendo Switch, PlayStation 4&5, Xbox One and Xbox Series X/S
Rating: 3.5/5
MATCH INFO
Uefa Champions League semi-final, first leg
Barcelona v Liverpool, Wednesday, 11pm (UAE).
Second leg
Liverpool v Barcelona, Tuesday, May 7, 11pm
Games on BeIN Sports
Cryopreservation: A timeline
- Keyhole surgery under general anaesthetic
- Ovarian tissue surgically removed
- Tissue processed in a high-tech facility
- Tissue re-implanted at a time of the patient’s choosing
- Full hormone production regained within 4-6 months
PREMIER LEAGUE FIXTURES
All kick-off times UAE ( 4 GMT)
Saturday
Liverpool v Manchester United - 3.30pm
Burnley v West Ham United - 6pm
Crystal Palace v Chelsea - 6pm
Manchester City v Stoke City - 6pm
Swansea City v Huddersfield Town - 6pm
Tottenham Hotspur v Bournemouth - 6pm
Watford v Arsenal - 8.30pm
Sunday
Brighton and Hove Albion v Everton - 4.30pm
Southampton v Newcastle United - 7pm
Monday
Leicester City v West Bromwich Albion - 11pm
About Krews
Founder: Ahmed Al Qubaisi
Based: Abu Dhabi
Founded: January 2019
Number of employees: 10
Sector: Technology/Social media
Funding to date: Estimated $300,000 from Hub71 in-kind support
ANDROID%20VERSION%20NAMES%2C%20IN%20ORDER
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The Africa Institute 101
Housed on the same site as the original Africa Hall, which first hosted an Arab-African Symposium in 1976, the newly renovated building will be home to a think tank and postgraduate studies hub (it will offer master’s and PhD programmes). The centre will focus on both the historical and contemporary links between Africa and the Gulf, and will serve as a meeting place for conferences, symposia, lectures, film screenings, plays, musical performances and more. In fact, today it is hosting a symposium – 5-plus-1: Rethinking Abstraction that will look at the six decades of Frank Bowling’s career, as well as those of his contemporaries that invested social, cultural and personal meaning into abstraction.
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
AUSTRALIA SQUAD v SOUTH AFRICA
Aaron Finch (capt), Shaun Marsh, Travis Head, Chris Lynn, Glenn Maxwell, D'Arcy Short, Marcus Stoinis, Alex Carey, Ashton Agar, Mitchell Starc, Josh Hazlewood, Pat Cummins, Nathan Coulter-Nile, Adam Zampa
LIKELY TEAMS
South Africa
Faf du Plessis (captain), Dean Elgar, Aiden Markram, Hashim Amla, AB de Villiers, Quinton de Kock (wkt), Vernon Philander, Keshav Maharaj, Kagiso Rabada, Morne Morkel, Lungi Ngidi.
India (from)
Virat Kohli (captain), Murali Vijay, Lokesh Rahul, Cheteshwar Pujara, Rohit Sharma, Ajinkya Rahane, Hardik Pandya, Dinesh Karthik (wkt), Ravichandran Ashwin, Bhuvneshwar Kumar, Ishant Sharma, Mohammad Shami, Jasprit Bumrah.
Financial considerations before buying a property
Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.
“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.
Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.
Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.
The specS: 2018 Toyota Camry
Price: base / as tested: Dh91,000 / Dh114,000
Engine: 3.5-litre V6
Gearbox: Eight-speed automatic
Power: 298hp @ 6,600rpm
Torque: 356Nm @ 4,700rpm
Fuel economy, combined: 7.0L / 100km
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Emergency phone numbers in the UAE
Estijaba – 8001717 – number to call to request coronavirus testing
Ministry of Health and Prevention – 80011111
Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre
Emirates airline – 600555555
Etihad Airways – 600555666
Ambulance – 998
Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries
Teaching in coronavirus times
RESULTS
5pm: Maiden (PA) Dh80,000 1,400m, Winner SS Lamea, Saif Al Balushi (jockey), Ibrahim Al Hadhrami (trainer).
5.30pm: Wathba Stallions Cup Handicap (PA) Dh70,000 1,400m, Winner AF Makerah, Sean Kirrane, Ernst Oertel
6pm: Handicap (PA) Dh80,000 1,600m, Winner Maaly Al Reef, Brett Doyle, Abdallah Al Hammadi
6.30pm: Handicap (PA) Dh90,000 1,600m, Winner AF Momtaz, Antonio Fresu, Musabah Al Muhairi
7pm: Handicap (PA) Dh80,000 2,200m, Winner Morjanah Al Reef, Brett Doyle, Abdallah Al Hammadi
7.30pm: Handicap (TB) Dh100,000 2,200m, Winner Mudarrab, Jim Crowley, Erwan Charpy
ICC T20 Team of 2021
Jos Buttler, Mohammad Rizwan, Babar Azam, Aiden Markram, Mitchell Marsh, David Miller, Tabraiz Shamsi, Josh Hazlewood, Wanindu Hasaranga, Mustafizur Rahman, Shaheen Afridi
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
EA Sports FC 26
Publisher: EA Sports
Consoles: PC, PlayStation 4/5, Xbox Series X/S
Rating: 3/5
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Libya's Gold
UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves.
The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.
Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.
A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.
