This article was submitted by a Guest Contributor.
It’s the year of the Tiger for 2022!
If you’re looking to invest your Ang Bao money this year, these are some options you can explore!
1. Metaverse stocks
Assuming you’re young enough to still receive red packets at Chinese New Year (>.<), generally you would have a higher risk appetite and longer time-frame to be invested.
In that case, you may want to consider higher-risk growth types of investments.
At the moment, one of the biggest growth areas with the most potential is the Metaverse.
What is the Metaverse?
From Time,
Once a niche concept beloved of tech enthusiasts, the idea of a centralized virtual world, a “place” parallel to the physical world, has careened into the mainstream landscape this year, as epitomized by Facebook’s decision in October to rebrand as Meta.
Millions of people are spending hours a day in virtual social spaces like Roblox and Fortnite.
Interest in purely digital ownership—and the technology that proponents believe can ensure the security of persistent virtual experiences—has spiked dramatically, with non-fungible tokens (NFTs) and cryptocurrencies making headlines.
Virtual productivity platforms are growing too, with Facebook and Microsoft announcing new ways to collaborate online. Hybrid offices, video-based education and online social communities are just a few of the ways in which more of our lives—for better or worse—is spent in digital spaces.
How to Invest?
Investing in the Metaverse is so diverse that it can be pretty hard to know where to get started.
Fortunately, there’s an ETF for this! The Roundhill Ball Metaverse ETF (META ETF) is designed to offer investors exposure to the Metaverse by providing investment results that closely correspond, before fees and expenses, to the performance of the Ball Metaverse Index.
The Ball Metaverse Index is the first index globally designed to track the performance of the Metaverse. This includes areas such as:
- Computing: companies enabling and supply of computing power to support the Metaverse
- Networking: companies providing real-time connections, high bandwidth, and data services to consumers
- Virtual Platforms: companies developing and operating immersive digital and often three-dimensional simulations, environments and worlds wherein users and businesses can explore, create, socialize and participate in a wide variety of experiences.
- Interchange Standards: companies building tools, protocols, formats, services, and engines which serve as actual or de facto standards for interoperability, and enable the creation, operation and ongoing improvements to the Metaverse.
- Payments: The support of digital payment processes and operations, which includes fiat on-ramps to pure-play digital currencies and financial services.
- Content, Assets, and Identity Services: The design/creation, sale, re-sale, storage, secure protection and financial management of digital assets, such as virtual goods and currencies, as connected to user data and identity.
- Hardware: The sale and support of physical technologies and devices used to access, interact with or develop the Metaverse.
These are the Top 10 Holdings (as at Dec 2021):
Check our FH’s Guide to the Best Trading Platforms for Singapore Investors (2022)!
2. Cryptocurrency
Closely related to the Metaverse is the blockchain.
Cryptocurrency cannot be avoided if you want to talk about high-risk high-return type of investments.
Check out FH’s Guide to the Best Crypto Trading Platform for Singapore Investors (2022)!
3. Covid-Rebound Stocks
If the Metaverse/Crypto is not for you, you can think about counter-cyclical plays such as Covid-rebound sectors.
Consider these 8 industries that have been impacted negatively by the pandemic:
- Healthcare
- Airlines
- Hotels
- Construction
- Materials Supply Chain
- F&B
- Retail
- Oil & Gas
Check out FH’s Top REITs to buy in 2022 for Singapore Investors!
Covid has significantly changed how we work, play and do things.
Consider these 8 major trends:
- Work from Home
- Cloud computing
- Chips & Semiconductors
- Social Media
- E-Commerce
- E-Payments
- Food delivery
- Home gyms/ Athleisure
4. Consumer Discretionary Stocks
If the above are too high-risk for you, consider investing in what you personally use and enjoy on a daily basis.
Think about your own consumer spending habits. Where do you spend money & what do you like spending money on?
Consider also the Top 100 most valuable brands in the world.
Of these, which do you see the most potential for continued growth in the next 10 years?
5. Invest in yourself
Finally, there’s nothing better than investing in yourself.
This is very very true.
As Warren Buffett famously stated, the best investment you will ever make is in yourself.
Consider investing in your:
- Health
- Career
- Relationships
- Skills
- Knowledge
Think about your goals for 2022, and what you can improve on!
If you’re looking for a comprehensive guide to investing, check out:
CNY Promo for the Stocks Masterclass is ending this week! Check it out here!
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The contents of this article are not to be construed as investment advice and does not constitute any offer, solicitation or recommendation of any investment. The content provided is for general purposes only and does not take into account individual needs, investment objectives and specific financial circumstances. Kindly note that all investments involve risk.