Investment trend is the term used to describe points or areas where resources should be allocated to maximize returns. These trends illustrate points in time when investing in particular industries or types of assets can provide outsize gains.
Seasoned investors use short- and medium-term volatility to buy into investment themes they believe will profit over many years. But, amid all the noise around the latest investment trend, it can be difficult to distinguish which trends have real merit.
For example, there’s been a lot of talk about “meme stocks,” but what do they actually represent? And, how do you determine if they are worth your time or money?
Despite a volatile first quarter, earnings season has generally been a positive one, with companies largely beating expectations. But with a hazy outlook for the economy and US trade policy, some investors are nervous about future growth prospects.
Against this backdrop, some investors are also rethinking geographic asset allocation as relative valuations in Europe and Asia look cheaper than the US. But will this shift be temporary, or is it the beginning of a sustained pass of capital?