There’s no doubt that the landscape of the financial market is evolving at an incredible rate on the back of relentless innovation and technological advancement.
This is of considerable interest to investors, who are constantly identifying new and cutting-edge technologies that are likely to deliver a return in the modern age. Whether you invest through an ISA account or manage a self-invested personal pension (SIPP) plan through Bestinvest, it’s crucial that you monitor exciting technology trends as they develop.
But which technologies represent the best investment options in the near-term? Here are three of our top picks:
- Blockchain and Applications such as Ripple
When we say Blockchain you probably hear Bitcoin, and there’s a good reason for this. After all, this market-leading cryptocurrency enjoyed exponential growth last year as its price soared from $900 to a little over $20,000 in just 12 months.
The value of Bitcoin has since declined, however, while Blockchain (the technology that underpins cryptocurrency) continues to thrive in the marketplace. Make no mistake, Blockchain benefits from a host of potential applications, with its status as a decentralized ledger capable of revolutionizing sectors such as banking, logistics, and investment.
Ripple remains one of Blockchain’s key applications in recent times, and one that serves as a protocol and transparent payment network in the cryptocurrency market. In fact, its dual status as a prominent token and virtual ledger have alerted investors across the globe, while its value could potentially soar considerably this year and beyond.
- Lithium and Battery Technology
We’ve seen incredible innovations in battery technology in recent times, with innovations such as rechargeable Lithium units and hydrogen fuel cells increasingly capable of providing sustainable power.
The demand for this type of tech has also increased considerably during the last few years, particularly in the automotive and consumer electronics sectors. The former market is proving to be particularly influential, with more than two million electric cars having now been sold worldwide, the UK government is pledging to outlaw the sale of petrol and diesel models by the year 2040.
As a result, both Lithium and Cobalt represent lucrative assets for investors to target in the near term with gross profit margins in excess of over $5000 per ton expected for years.
- Artificial Intelligence (AI)
AI has already entered the consumer mainstream in recent times, with the rise of personal assistants and devices such as Amazon’s Alexa driving the growth of this potentially huge market.
As leading tech brands continue to run complex algorithms that have benefited from the use of graphical processor units, AI and integrated machine learning have become increasingly sophisticated during the last 18 months. This trend is set to continue, with companies such as Google, Nvidia and the aforementioned Amazon likely to increase their investment in AI in the years ahead.
As a result of this, some industry experts expect these firms to see outsized gains in share price performance, and this should be of interest to investors across the globe.
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