Financial Investment Trends 2016

Top Trends for Financial Investments in 2016

As the world economy continues its roller coaster ride at the beginning of 2016, many trends are emerging when it comes to financial investments. Whether it’s stocks, bonds, or other options, it’s clear that for those who do their homework and are willing to take a chance when others retreat, opportunities are around every investment corner. To make sure you are aware of the best moves to make with your money, here are some of the top trends for financial investments in 2016.

Energy Stocks If there is one area of the economy that has taken a beating in the past year, it’s the energy industry. Still reeling from oil prices that just keep going lower, the stocks of many energy companies are now seen as bargains that can be bought up at very low prices. With commodity prices appearing to have stabilized and the world demand for oil expected to increase even more in 2016, energy stocks are trending at a high rate for smart investors.

High-Yield Bonds

Although junk bonds have plummeted due to low oil prices, stock market volatility, and the expected increase in interest rates, high-yield bonds are currently thriving. In fact, most investment advisors now recommend dedicating a portion of one’s investment portfolio to highyield bonds, such as those which are low expense and no-load. Some of these bonds are currently providing yields of almost six percent annually to investors, making them a very attractive option.

Biotechnology Stocks Although considered a risky investment by some experts, biotech stocks are still viewed as some of the most attractive financial investments in 2016. Due to the S&P Biotech Select Industry Index tripling its value within the past five years, biotech stocks are now looked at primarily as long-term investment options. This is due to the numerous medical treatments pursued by biotech companies, which can be very risky initially. However, as research methods are becoming more standardized among these companies, it’s expected that smaller biotech companies may offer the most promise, but also the highest risk in 2016. But with the presidential election looming and many politicians focusing their efforts on pharmaceutical companies, biotech stocks could stay under the radar for much of 2016, making them smart investment choices.

While these and other investment options are trending well for 2016, most investment experts still believe it will be wise for investors to think long and hard before making their investment decisions. With the current volatility in the stock market and China’s economy, it may pay to sit back and be patient before taking the investment plunge. But when individual investors feel as if they are ready, there’s little doubt the options mentioned above will be very smart choices.

Jonah Engler is a financial expert from NYC.