Investing in the stock market is quite complex, especially since with the passage of the covid, then the war in Ukraine, the economy has experienced significant turbulence. Indeed, indices such as the CAC40 have suffered record falls. This is evidenced by the months of February and March 2020 when the French index lost 39% in 30 days. Never seen since its creation.
Sommaire :
Before you start, think about training
As much as the world of the stock market can be fruitful, it can also be devastating for your savings if you are not trained. In addition to training, consider investing only the money you can afford to lose. This will allow you to avoid mishaps and especially not to stress at each market fall.
You will fing a lot of free ressoursouces on the web like this video you Warren Buffett: “How You Should Invest in 2022”.
Investing in the stock market, yes, but in what?
Because of the covid, inflation is soaring, and the war in Ukraine is not helping. The prices of materials are exploding, especially in the energy sector.
In this context, many people are wondering in which sector to invest in the stock market in 2022?
Here are some promising sectors that we will present to you to get passive income with stock market investment:
- Renewable energies
- Communication
- Cryptocurrency
Investing in 2022 in renewable energies
The world is currently becoming aware of the climate emergency, and many companies have understood that there was an ecological shift not to be missed. Some markets in this sector are exploding, and demand is growing. The war in Ukraine has also made states aware of the need to stop depending on fossil fuels, which are largely produced by Russia.
In this context, many companies are doing well and their turnover is increasing rapidly.
If you want to invest in this sector, here are some companies that dominate the market:
- Orsted A/S
- Iberdrola SA
- JinkoSolar Holding Co. Ltd.
On the French side, Neoen seems to have a very big potential, some big American companies would like to buy it.
SEE ALSO: Investing passively in the stock market via ETFs: good or bad idea?
Investing in cryptocurrency in 2022
After a spectacular surge in November 2021 in what is known as a bull market, bitcoin reached its highest level until it reached $69,000 A price never reached before.
Although some thought that there was no correlation between crypto-currencies and the stock market, we have seen that the fall of the global markets has dragged the vast majority of crypto-currencies down with it.
Why is this? It’s pretty simple to understand. Big companies as well as investment groups found themselves in need of liquidity when the global indices fell. So they had to find some quickly, by reselling other assets in their possession, such as Bitcoin, Ethereum etc…
Why is this surely the best time to buy cryptocurrencies?
Simply because the crypto market is coming out of several long months of successive falls. You should know that in the space of a year, bitcoin has lost more than 42% of its value. Ethereum has lost more than 49% and XRP nearly 53%.
However, never before have so many projects been created as at this moment. And with the birth of Etherum 2.0, this is not going to stop!
The communication sector in full expansion
In a modern world where the population is very often connected, the communication sector is particularly growing. It is necessary to know that today a company invests on average 10% of its turnover in communication.
This sector is constantly evolving. Especially since with the various confinements, many users have changed their consumption habits.
They no longer hesitate to buy their products and services online. Companies are investing much more to strengthen their presence on the web. There is a real digital shift for many of them, and it almost always involves an increase in spending on communication.
The world is changing, and communication agencies are constantly innovating. Marketing is in transition. The advertising pages on television, the inserts in the press, or the displays in the transport are less and less popular. You only have to look at the audience of the television channels which are falling year after year. Today, everything happens online, with campaigns that want to surprise you and make you laugh.
Influencer marketing is on a roll too, as these projections for the next few years prove.
To conclude
Although you now know which sector to invest in in 2022, don’t hesitate to diversify your portfolio as much as possible, and buy in successive increments in case the financial crisis isn’t quite over yet. Invest a little each month, so that you can smooth out the purchase prices of your stocks or cryptocurrencies.
