Renewable energy sources like wind, solar, and hydrogen are receiving substantial government support and private investment, making green energy companies appealing to investors with a long-term view. In addition to conventional financial assets, the best investments for 2025 are Luxury assets in the fashion and lifestyle sectors, which offer value diversification. The investment scene remains alive and well, offering a variety of wealth-boosting opportunities. Investors are now crafting new portfolios that go beyond the usual stocks and bonds. Trading involves highly speculative products with significant risk, including the potential for loss of capital.
High-yield savings accounts
As you’re deciding what to invest in, you’ll want to consider several factors, including your risk tolerance, time horizon, your knowledge of investing, your financial situation and how much you can invest. Bitcoin ETFs are available at any brokerage — and you can typically trade them for no commission, though the funds will charge an expense ratio based on the size of your investment in the fund. The Trump administration is perceived to be crypto-friendly and may make it easier for cryptocurrency to be integrated into financial markets. Bitcoin ETFs own the world’s largest cryptocurrency and make it easy to purchase on the stock exchange. The funds’ returns mirror those of the cryptocurrency minus the fund’s expense ratio, which in many cases is quite low. A Nasdaq-100 index fund is a solid selection for stock investors looking for growth and willing to deal with significant volatility.
Research bonds quickly and easily
AI adoption is accelerating, supported by technological advancements and increased investment. According to PwC, AI-driven technologies will contribute $15.7 trillion to the global economy by 2030. Regulatory frameworks are also evolving to ensure ethical AI usage, further boosting the sector’s credibility.
Risk Disclaimer
Artificial intelligence (AI) and other transformative technologies have been among the best assets to buy over the past decade, and this trend is expected to continue well into 2025. Tech stocks focusing on AI, robotics, and automation are experiencing tremendous growth as companies and industries worldwide integrate these technologies to boost efficiency and innovation. Other factors should be evaluated regarding their impact on short-term and long-term returns before making an investment decision in alternative assets. For investors looking for a good cause to invest in, this sector offers both good financial returns and greater environmental impact.
Market dynamics
The S&P 500 dipped to near bear-market territory in April amid policy uncertainty and recession fears, before staging a sharp rebound that recaptured most of those losses. While year-to-date performance has been modest, Chisholm’s research suggests investors shouldn’t count US stocks out. Lon Juricic sees KLA as a strong, defensive play within the semiconductor sector thanks to its de-risked exposure to the China markets. Thomas Monteiro highlights that, unlike Intel, KLA doesn’t have to fight for market share—it’s already an established leader with strong upside potential.
- Short-term Treasury ETFs hold Treasury bills, which expire in less than a year, and the funds pay a safe return that will fluctuate with the fed funds rate.
- This way, you can grow your wealth over time while enjoying some wins along the way.
- For instance, the U.S. economy grew by 2.1% in 2024, but inflation rates stabilized around 3.4%, affecting sectors differently.
- You can purchase an S&P 500 index fund at any broker that allows you to trade ETFs or mutual funds.
Security is key with crypto, as the industry is generally less regulated than many other areas of finance. There are not always the same Best investments for 2025 controls in place to get your money back in a case of fraud. Make sure you evaluate different wallets based on their security protocols, and consider different types based on your needs.
- Coinbase operates the world’s largest cryptocurrency exchange where customers can buy and sell over 200 currencies.
- And consider starting with an amount that’s a sliver of your overall investment portfolio, rather than making crypto your main investment right off the bat.
- HCA Holdings (HCA) is one of the biggest private hospital operators in the United States.
- Coinbase operates in more than 100 countries and safeguards $273 billion in assets.
- Yes, U.S. Treasury securities are backed by the full faith and credit of the U.S. government, making them one of the safest investment options.
You can buy small-cap funds as either an ETF or mutual fund, and they’re available at any broker offering these two types of funds. Typically, ETFs are commission-free, while you may have to pay a transaction fee for mutual funds. With interest rates having peaked last year, growth stocks such as small caps may be poised for a strong performance in 2025. Dividend stock funds are available as either ETFs or mutual funds at any broker that deals in them. ETFs may be more advantageous because they often have no minimum purchase amount and are typically commission-free.
Pfizer offers a comparatively high yield for a large pharma stock—around 6.9%, compared to the healthcare sector average of 1.6%. The company has been increasing its dividend for the past 16 years in a row. AbbVie offers a dividend yield of 2.9%, compared to the healthcare sector average of 1.58%. Its earnings can sustain its reasonable payout ratio of 46% for now, leaving room for further increases. The company has a 53-year-long history of raising its dividend, making it a Dividend King.
Emerging markets are growing fast and offer big chances for investment growth. Investing in them can bring bigger returns and add a new edge to your portfolio. Diversify with emerging markets, new tech, and green sectors to balance risk. As these places join the world economy, more investors are getting interested. Rising demand from consumers and strong economic actions make them good for those wanting to diversify and see long-term growth. Investing in AI and technology stocks provides exposure to companies at the forefront of change, particularly those developing software, data analytics, and hardware.
And it’s a strong buy consensus among analysts despite industry headwinds. Lockheed Martin (LMT) continues to be a solid pick for investors, with its strong position in the defense and aerospace sectors. Even with the potential setback thanks to the new administration’s focus on cost efficiency, it’s unlikely that defense spending will decrease in the areas that will more heavily affect this stock. In the webinar below, Jesse Cohen, Thomas Monteiro, and Lon Juricic from Investing.com break down InvestingPro’s stock predictions for 2025, offering insights into the key factors that will shape the market. From the potential for further AI-driven growth to the looming threat of higher interest rates, these factors will undoubtedly influence stock performance throughout the year.
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An S&P 500 index fund is a good choice for any stock investor looking for a diversified investment and who can stay invested for at least three to five years. These funds are low risk, and perhaps the biggest risk is that the interest rate falls if the Federal Reserve lowers short-term interest rates. Treasury funds are a great safe haven if the market gets rocky, and you can use them to hold cash until it’s time to invest in stocks or other investments.
It’s also been on the ProPicks list several times over the course of last year, except for December when the selloff occurred. There are plenty of bullish drivers thanks to its AI positioning and the current market price. As a leader in cybersecurity, Fortinet (FTNT) is well-positioned to benefit from the growing demand for robust security solutions, particularly with the rise of AI-driven cyber threats. A growing firewall upgrade cycle in 2025 should provide Fortinet with an additional tailwind, boosting demand for its solutions.
And that means you need safer investments such as savings accounts, CDs or maybe bonds. An S&P 500 fund is one of the less-risky ways to invest in stocks, because it’s made up of the market’s top companies and is highly diversified. Of course, it still includes stocks, so it’s going to be more volatile than bonds or any bank products.