Stock selection involves forecasting future performance. Investors understand that identifying a trend early and investing in a company positioned to capitalize on it can yield substantial returns. Investors who purchased Amazon in 1998, Tesla in 2012, or Nvidia in 2020 accurately anticipated the subsequent surges in online retail, electric vehicles, and the artificial intelligence revolution, thereby reaping substantial profits.
Trends to Consider Before Investing in 2025
Trend One: Geopolitics
In recent years, global conflict has escalated due to warfare in the Middle East and Ukraine, alongside heightened tensions in the Taiwan Strait. These tendencies are concerning yet also offer a prospect for investors. Global conflicts have resulted in a scarcity of weaponry, especially missiles and missile defense systems, rendering military contractors a promising investment for 2025. Ron Epstein, a senior analyst at Bank of America, projects that the U.S. will allocate approximately $1 trillion for military in the upcoming year, and he maintains buy ratings on all prominent corporations within the sector.
An advantageous choice for individuals wagering on persistent instability is traditional gold—specifically, via an ETF such as Ndovu Gold Fund, which allows for the possession of the precious metal at a reasonable expense. Although gold prices declined in November following Donald Trump's election, many anticipate that the ETF will maintain its previous robust performance.
Trend Two: Huge Demand for Energy
Global energy consumption is at an unprecedented high, with the trajectory indicating a continuous increase. Electric vehicles and our expanding array of perpetually connected devices contributed to a global peak in energy usage last year, as reported by the Energy Institute.
The AI surge is set to revitalize Three Mile Island in Pennsylvania, the location of the most catastrophic nuclear incident in U.S. history. Constellation Energy (CEG), the plant's owner, will invest $1.6 billion over the next four years to reactivate its intact Unit 1 reactor, anticipating that nuclear energy can provide a substantial increase in revenue.
The stock price of Constellation, the largest nuclear plant owner in America, has increased more than double this year. Wall Street anticipates the corporation will achieve a 30% annual earnings increase for 2024, whilst Visible Alpha forecasts free cash flows may attain $1.5 billion.
Trend Three: Artificial Intelligence
Since ChatGPT launched in November 2022, artificial intelligence demand has fueled a stock market boom. The market valuations of public companies directly associated to AI have skyrocketed, while even unrelated areas like the utility sector have benefited.
As a pure play, Nvidia (NVDA) is hard to beat in the AI boom.
Many organizations racing to catch up in the AI era are hungry for its flagship GPU processors. Analyst Angelo Zino of CFRA Research believes Nvidia's total addressable market will grow. Sales were $30 billion last quarter, up 122% from a year earlier, and Zino expects them to reach $50 billion in two years. Mortonson thinks Microsoft is the greatest choice among traditional tech companies because it has invested $14 billion in OpenAI since 2019. Ndovu offers you the chance to take advantage of the AI boom by investing in Microsoft and Nvidia stocks.Download the Ndovu app now available on Android and IOS and start investing.
Trend Four: Healthcare
The move toward more physical activity is accompanied by a renewed emphasis on self-care. This includes technology that detects breast cancer and other health problems for women. Hologic (HOLX), a medical business that offers 3D mammography technology and generates around $4 billion in revenue annually, is a major competitor in the market. According to Andrew Brackmann, an equity research analyst at William Blair, it holds a market share of over 80% in the United States and 30% abroad for mammography imaging. At Ndovu, you can invest in healthcare stocks which comprises companies like pfizer, Johnson and Johnson
, MERCK, United Healthcare and more.
2025 is an exciting year that will provide new opportunities for you to invest in and Ndovu is your best option to not only invest in the right assets but also acquire expert advice on the markets and its potential risks and opportunities.
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