By: Maya Williams
Smart investment decisions in 2024 look a little different. With the shifting economic landscape, it’s crucial to stay ahead, and this year into 2025, unique opportunities lie within commodities and genomes. As economic conditions evolve, investing in sectors like metals, energy, and biotechnology can offer significant returns.
Investors are seeing value in Global X Natural Gas ETF after a sharp decline in 2022 and in Global X Uranium ETF earlier this year. Similarly, the ARK Genomic Revolution ETF is catching the eye of savvy wealth advisors after a substantial drop, aligning with the belief in the growth potential of genomics.
Senior Portfolio Manager & Senior Wealth Advisor Thane Stenner, CIM®, FCSI® of Stenner Wealth Partners+ at CG Wealth Management Canada has experienced firsthand the effects of 2024 and the trends that may still be under the radar for many. His investors act on emerging market trends, such as the iShares MSCI Mexico ETF, which they sought after the market dip. Mr. Stenner unpacks and discusses his investment strategies and best practices involving selling overvalued assets, allowing timing and market awareness to guide these decisions.
Current Economic Landscape
Understanding the economic landscape is essential when making investment decisions. Household debt in Canada is climbing. Many families have taken on large mortgages, car loans, and credit card debt. As interest rates rise, renewing a mortgage can mean higher monthly payments. This can put a strain on household budgets, making it harder to pay for everyday needs.
“We may not see recession today, but that’s simply because it’s delayed,” says Thane Stenner.
“When we do see it, recession could become worse than what people think.”
High household debt makes the economy more vulnerable. When families cut back on spending to pay down debt, businesses suffer, leading to slower economic growth. Simply put, Canada’s high household debt levels create a fragile situation. Families must balance their budgets, all while keeping an eye on their mortgage rates.
Recent economic indicators tell us a lot about the state of the economy. In recent months, insolvency rates have been climbing. More people are unable to pay their debts, leading to a higher number of bankruptcies. This is often a sign of financial stress in households and potentially a slowing economy.
The real estate market is showing signs of strain. Major cities are seeing a surge in condo listings but a decline in sales. Too many properties on the market can drive prices down, hurting homeowners looking to sell. Falling sales suggest that people are taking a wait-and-see approach, possibly due to uncertainty about the economy.
Opines Stenner, “The wall of debt requiring financing right now is not something we’re prepared for.”
These indicators paint a picture of an economy facing some challenges. High household debt and shifting real estate trends are areas to watch keenly for making informed investment decisions. By keeping an eye on these aspects, investors can better navigate the economic landscape and make more strategic choices.
Photo: Unsplash.com
Investment Strategies for 2024
Navigating the investment world in the rest of 2024 involves balancing risk with potential rewards. Understanding the right strategies can make all the difference between preserving wealth and achieving growth. Here are some key approaches to consider.
Adopting a low-volatility investment strategy can provide consistent returns while minimizing risk. This approach can be especially beneficial in uncertain market conditions. Unlike high-risk investments, a low-volatility strategy aims to offer steady and predictable returns. This makes it an excellent choice for those looking to preserve their wealth rather than make quick gains.
Investing in low-volatility assets can reduce the emotional stress associated with market swings. You won’t be constantly worrying about your investments losing value overnight. By focusing on assets that have historically shown low volatility, you can protect your capital.
This is particularly important for retirees or those nearing retirement who can’t afford to lose significant portions of their investments. The low-volatility approach isn’t flashy, but it’s a tried-and-true method for those who prioritize stability and long-term wealth preservation over short-term gains.
Commodities and Genomic Investments
“In 2024, investors are keenly watching the commodities and genomics sectors for promising opportunities,” says Stenner.
Both areas offer exciting potential, but understanding the emerging trends and market outlook is crucial for making informed decisions. The genomics sector is buzzing with innovation. Cutting-edge technology and new research are driving this field forward at an astonishing pace. The popularity of CRISPR technology is skyrocketing. This tool allows scientists to make precise changes in DNA, opening the door to potential cures for genetic diseases. Companies involved in CRISPR research are catching the eye of savvy investors.
Tailoring medical treatment to individual genetic profiles is becoming more feasible. This trend offers potentially better outcomes for patients and is expected to boost the value of companies that specialize in genomic diagnostics and personalized therapies. Advancements in gene therapy, which involves inserting genes into a patient’s cells to potentially treat or prevent disease, are providing new investment opportunities. Successes in this area could lead to significant returns.
Artificial Intelligence is playing a growing role in genomics. AI helps analyze vast amounts of genetic data quickly and accurately. Companies leveraging AI are likely to see strong growth. As regulatory bodies become more familiar with genomics, the approval process for new treatments is becoming more streamlined. Faster approvals mean quicker returns on investments.
Commodities Outlook for 2024
The commodities market is poised for an interesting year. Various factors could influence demand and price movements. With a push for cleaner energy, natural gas is still a hot commodity. The Global X Natural Gas ETF, for instance, has shown promise after a significant price dip.
Nuclear energy is regaining traction as a low-carbon power source. The Global X Uranium ETF is one to watch as investments in nuclear energy rise. Economic uncertainty often drives demand for precious metals like gold and silver. ETFs such as VanEck Junior Gold Miners and iShares MSCI Global Silver and Metals Miners are appealing options.
The demand for these metals is expected to grow, driven by infrastructure projects and the green energy boom. Investing in companies that mine and refine these metals could pay off. Crop yields and climate change effects will influence the prices of wheat, corn, and soybeans. Watching weather patterns and geopolitical events can provide hints about price trends. Changes in trade policies and regulations can have a major impact on commodity prices. Keeping an eye on policy changes can help you anticipate market shifts and adjust your investments accordingly.
By staying informed of these trends and market outlooks, investors can position themselves to make smart, timely decisions in the commodities and genomics sectors.
2024 presents unique opportunities for investors, particularly in commodities and genomics. The fall of Global X Natural Gas ETF and Global X Uranium ETF provided deep value entry points. The ARK Genomic Revolution ETF also offers substantial growth potential despite its recent dip.
These investment strategies and actions highlight the importance of informed and timely investment decisions. As market conditions evolve, staying vigilant and responsive is crucial for maximizing returns.
Thane Stenner, renowned for his experience in wealth management, has an impressive academic background that includes graduating with honors from Arizona State University and participating in Harvard Business School’s Executive Program. He is cross-border licensed with FINRA in the USA, and with CIRO in Canada, with clients based in San Francisco and the Bay Area as well as across Canada.
His professional journey has spanned several high-ranking positions at Morgan Stanley Wealth Management, including Managing Director and International Client Wealth Advisor, where he spearheaded portfolio management for ultra-high net worth clients. Stenner’s insights have been featured in multiple prestigious outlets like the Globe & Mail, Canadian Family Offices, and BNN Bloomberg.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial advice. Readers are encouraged to conduct their own research and consult with qualified professionals before making financial decisions. Results may vary, and success stories shared are not indicative of guaranteed outcomes for all individuals.
Published by: Khy Talara
