This year, private investors found themselves in a stalemate. On the one hand, they inspire confidence a strong American economy with high demand and an active labor market. On the other hand, President Trump’s aggressive and inconsistent economic policy adds uncertainty to both global and national markets, particularly the stock market. His unpredictable decisions, first of all, sudden introduction of tariffs or changes in trade agreements, and generally persistent pedaling of the isolationist track of Uncle Sam, create additional risks for investors, making it difficult to predict market trends. In such a situation, it is important to choose investment strategies that will allow you to take advantage of growth opportunities and simultaneously control risks.
Retail investing amid tech sector volatility and record dividend payouts
Recently, financial publications have reported record interest of retail investors in stocks, which has reached its peak since 1997. Retail investment has topped $2 billion twice, a feat accomplished only nine times in the past three years.
At the end of January, after the Chinese startup DeepSeek announced the development of an advanced model of artificial intelligence, Nvidia shares suffered a significant drop – by 17%, which led to to a loss of approximately $593 billion in market capitalization. This fall was caused by investor concerns about a possible decline in demand for Nvidia chips, as the DeepSeek R1 model can achieve high results with lower costs and less powerful hardware. Despite these fears, analysts sure in Nvidia positions. They say Microsoft and Meta Platforms continue to invest heavily in AI technology, which is supporting demand for Nvidia’s chips. In addition, retail investors do not demonstrate signs of slowing interest in Nvidia stock and are using the temporary decline in value as an investment opportunity.
Technological sector remains driving force of the market. Despite predictions that the AI boom is over, leading tech companies are showing steady revenue growth and innovation in cloud, digital advertising and AI. Analysts believe that even with a possible economic slowdown, the technology sector will continue to outperform market averages due to its adaptability and leadership in innovation.
As for dividend payments by companies, their volume may increase this year achieve $685 billion, which will be a record figure. This is due to high business profitability and moderate economic growth. The financial, real estate and healthcare sectors have significant potential for increasing dividend payouts. Thus, financial institutions can increase dividends by more than 20%, and development companies and medical institutions predict an increase in payments by 25% and 9%, respectively. Even tech giants continue to make significant payouts, a sign of the maturity of their business models.
Core-Satellite – a combination of stability and growth in the investment portfolio
For investors who want to protect their money and profit at the same time, it is optimal “Core-Satellite” approach. This strategy involves creation the basis of the portfolio – “core” – from reliable and stable assets such as ETFs on the broad market index S&P 500. This helps to reduce risks and protect against significant losses.
An additional segment – “satellite” – consists of assets with high growth potential, including shares of innovative companies or even cryptocurrencies. This approach allows you to balance risks and profits, adapting the portfolio to current market conditions and technological trends.
For investors seeking to minimize risk, corporate bonds are a good option. Holding bonds to maturity provides stable income and reduces exposure to market fluctuations. To reduce the risk of default, it is important to choose bonds of companies with a high credit rating. Fixed income and predictable cash flows make bonds attractive to those looking for stability.
Investments in sustainable development, ESG principles for green energy
In modern business, the principles of environmental, social responsibility and corporate governance (ESG) have become a necessity. Investors are increasingly investing their money in companies that not only make a profit, but also demonstrate responsibility to society and the planet.
In accordance with KPMG research, 96% of the world’s leading companies have already implemented ESG reporting in their work. It is obvious that sustainable development has become a standard for business. European companies are preparing for the requirements of the EU Corporate Sustainability Reporting Directive, which will make ESG reporting mandatory for around 50,000 companies.
In Ukraine ESG principles are just making their debut, but interest in this approach is growing. Many companies, especially in the energy and agricultural sectors, are already implementing environmental and social initiatives. The interest of investors in such projects stimulates Ukrainian companies to expand their ESG strategies.
One of the examples of Ukrainian business, which implements principles of ESG, is the company “DTEK”. They invest in renewable energy, in particular, in wind and solar power plants, and implement social projects for the development of communities.
The transition to green energy is also becoming important for many countries and opens up new opportunities for investors in the solar and wind energy sectors. This is not only necessary for the environment, but also economically beneficial. Ukraine also joined this process, having significant potential in renewable energy sources. According to UkraineInvest, the share of renewable sources in the energy of the country can achieve by 2030, 40%. This ambitious goal requires large investments and creates attractive business opportunities.
One of the key incentives for investors is “green” tariff – a program under which the state guarantees the purchase of electricity produced from renewable sources at higher prices. It allows entrepreneurs get stable income from investments in solar and wind power plants. In addition, the development of green energy creates new jobs in manufacturing, engineering and research, which has a positive effect on the country’s economy.
Investing in solar and wind power plants is becoming more and more profitable. State support programs and the global trend to reduce CO₂ emissions make it not only environmentally correct, but also a profitable solution for those who want to make money in the new energy reality.
It is worth paying close attention to the shares of domestic companies whose quotations on the London and Warsaw stock exchanges are sharply have grown against the background of the news about the peace talks initiated by President Trump.
Investment opportunities in FinTech: blockchain, cryptocurrencies and mobile payments in Ukraine
Promising for diversification the portfolio may include investments in companies dealing with blockchain, cryptocurrencies or mobile payment platforms.
They change traditional financial services and innovations in FinTech – blockchain, digital currencies and mobile payment systems – create new opportunities for investors. Ukraine also actively participates in these changes.
Blockchain technology became a symbol of reliability and transparency in the financial sphere. In Ukraine, blockchain is actively used to simplify the exchange of assets and increase the security of transactions. Thanks to this technology, settlements become faster and liquidity increases.
Digital currencies, primarily cryptocurrencies, are becoming an important part of the modern economy. In the third quarter of last year, venture capitalists invested $2.4 billion in startups related to cryptocurrency and blockchain, showing the growing confidence in these technologies. Crypto market users are predicted to reach 1 billion by 2027, highlighting their importance in times of economic instability.
Due to their convenience and speed, they are gaining popularity among Ukrainians mobile payment systems LiqPay, Portmone and EasyPay. According to the research, about 40% of the population of Ukraine regularly uses electronic payment systems, which shows society’s readiness for digital financial solutions.
…In today’s investment climate, marked by economic uncertainty and geopolitical risks, investors should focus on portfolio diversification and prudent asset selection. The “Core-Satellite” strategy allows you to combine the stability of proven tools with the growth potential of such innovative sectors as AI technologies. At the same time, investing in sustainable development and green energy not only promotes environmental responsibility, but also opens up new opportunities for profit. Effective risk management and achieving financial goals will help investors rthorough analysis of market trends and adaptation to changing conditions.
Tetyana Viktorova
