We’re halfway through 2023, so it is an appropriate time to take another look at investment trends for the remainder of the year.
A lot has changed since the beginning of the year, while some macro events and trends remain stable.
Here are the top five investment trends to watch for the rest of 2023.
Bond market looks brighter
Bonds have emerged as a prime choice for investors among all the lower-risk investment options.
Recent interest rate increases by central banks around the globe have driven a return of appetite for fixed income, with demand for yield and interest picking up significantly in 2023.
The return opportunities from US, UK and European government bonds are at their highest in more than a decade, with a similar story in the investment-grade corporate bond space, with yields also at decade-plus highs.
Our view is there is no immediate end in sight for rising interest rates, although we expect the first central bank to end the rate rises to be the US Federal Reserve, while the European Central Bank will need to raise them a few additional times to bring the real ECB deposit rate further up. The Bank of England might need to raise rates into the new year, diverging further from its peers in doing so.
In such an environment, government bonds, asset-backed securities, high-yield bonds and emerging market debt remain interesting investment options. So, consider investing in bonds for the remainder of 2023.
Artificial intelligence is revolutionising tech
ChatGPT became the fastest app to grow a million users, while Nvidia has already reached the prestigious trillion-dollar valuation mark.
The common element between these two companies is that they are involved in artificial intelligence. Touted as the next frontier of technology, investments in AI are set to grow.
The International Data Corporation predicts global revenue for the AI market to reach $900 billion by 2026, so there is a good opportunity for return on investment.
If you’re a retail investor, consider investing in tech-related exchange-traded funds to get into the world of AI stocks.
Big Tech stocks such as Apple, Microsoft, Google and Meta that continue to invest in AI also remain a good option. They have an edge over newly established AI companies because of their stronger balance sheets.
But while AI is a domain of opportunity, investors should exercise caution. The latest innovation in AI, known as generative AI, could trigger “shiny object syndrome” among investors.
Chinese stocks are picking up, but investors remain cautious
After years of strict lockdowns, China is opening up and so is its economy. The nation’s gross domestic product increased by 4.5 per cent in the first quarter.
But investors have taken a cautious approach. There are two main reasons for it. First is that the recovery has not been as robust as previously expected. And secondly, there’s a cloud over sustainability and fundamental instability in the economy.
So, although Chinese stocks remain a good investment option, investors should stay cautious.
But if you’re interested in foreign investments, consider investing in the Middle East and North Africa region, which is expected to grow at 3.5 per cent, while the global figures stand at 1.9 per cent, according to the World Bank.
Opportunities remain in oil
The oil market remains unpredictable, at least in the long run. In 2022, there were some violent swings due to major factors such as Covid-related shutdowns and the Russia-Ukraine war.
In the first half of 2022, the price of oil was fairly stable, while the second half proved to be more tumultuous.
Oil prices may stay consistently above $70 through the rest of 2023. This depends primarily on Opec-led production controls, how the Fed reacts to inflationary pressures and the corresponding interest rates. If that remains predictable and as planned, opportunities remain in oil trading.
Besides oil, clean energy offers another lucrative opportunity to investors. Investments in this sector are accelerating faster than fossil fuels and are expected to continue to do so.
Besides oil, clean energy offers another lucrative opportunity to investors
Damian Hitchen,
chief executive, Saxo Bank Mena
Bullish for yen, bearish for pound
For FX investors, the Japanese yen and the British pound are two major currencies paired with the dollar. After a bearish 2022, the outlook for the yen looks bullish. The Bank of Japan has undertaken many stances that support the currency’s position.
The pound, on the other hand, continues to be under pressure. The other European currency, the euro, is expected to rebound in 2023 due to lower gas prices and better growth momentum.
While these trends provide valuable insights, investors should conduct thorough research and analysis before making any investment decisions to navigate the ever-changing landscape of the global economy.
Damian Hitchen is the chief executive of Saxo Bank Mena
Dates for the diary
To mark Bodytree’s 10th anniversary, the coming season will be filled with celebratory activities:
- September 21 Anyone interested in becoming a certified yoga instructor can sign up for a 250-hour course in Yoga Teacher Training with Jacquelene Sadek. It begins on September 21 and will take place over the course of six weekends.
- October 18 to 21 International yoga instructor, Yogi Nora, will be visiting Bodytree and offering classes.
- October 26 to November 4 International pilates instructor Courtney Miller will be on hand at the studio, offering classes.
- November 9 Bodytree is hosting a party to celebrate turning 10, and everyone is invited. Expect a day full of free classes on the grounds of the studio.
- December 11 Yogeswari, an advanced certified Jivamukti teacher, will be visiting the studio.
- February 2, 2018 Bodytree will host its 4th annual yoga market.
GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
Read more about the coronavirus
Killing of Qassem Suleimani
The specs: 2018 Audi Q5/SQ5
Price, base: Dh183,900 / Dh249,000
Engine: 2.0L, turbocharged in-line four-cylinder / 3.0L, turbocharged V6
Gearbox: Seven-speed automatic / Eight-speed automatic
Power: 252hp @ 5,000rpm / 354hp @ 5,400rpm
Torque: 370Nm @ 1,600rpm / 500Nm @ 1,370rpm
Fuel economy: combined 7.2L / 100km / 8.3L / 100km
FORSPOKEN
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COMPANY PROFILE
Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed
UAE currency: the story behind the money in your pockets
Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
UAE currency: the story behind the money in your pockets
The five pillars of Islam
SPECS
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KILLING OF QASSEM SULEIMANI
Mohammed bin Zayed Majlis
UAE currency: the story behind the money in your pockets
More on Quran memorisation:
It's up to you to go green
Nils El Accad, chief executive and owner of Organic Foods and Café, says going green is about “lifestyle and attitude” rather than a “money change”; people need to plan ahead to fill water bottles in advance and take their own bags to the supermarket, he says.
“People always want someone else to do the work; it doesn’t work like that,” he adds. “The first step: you have to consciously make that decision and change.”
When he gets a takeaway, says Mr El Accad, he takes his own glass jars instead of accepting disposable aluminium containers, paper napkins and plastic tubs, cutlery and bags from restaurants.
He also plants his own crops and herbs at home and at the Sheikh Zayed store, from basil and rosemary to beans, squashes and papayas. “If you’re going to water anything, better it be tomatoes and cucumbers, something edible, than grass,” he says.
“All this throwaway plastic - cups, bottles, forks - has to go first,” says Mr El Accad, who has banned all disposable straws, whether plastic or even paper, from the café chain.
One of the latest changes he has implemented at his stores is to offer refills of liquid laundry detergent, to save plastic. The two brands Organic Foods stocks, Organic Larder and Sonnett, are both “triple-certified - you could eat the product”.
The Organic Larder detergent will soon be delivered in 200-litre metal oil drums before being decanted into 20-litre containers in-store.
Customers can refill their bottles at least 30 times before they start to degrade, he says. Organic Larder costs Dh35.75 for one litre and Dh62 for 2.75 litres and refills will cost 15 to 20 per cent less, Mr El Accad says.
But while there are savings to be had, going green tends to come with upfront costs and extra work and planning. Are we ready to refill bottles rather than throw them away? “You have to change,” says Mr El Accad. “I can only make it available.”
Company%C2%A0profile
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BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
