The concept of business environment is characterized by many multidirectional uncertainties that determine how companies operate on a daily basis. The theory of investing capital with the hope of getting high returns is one of the main ways to manage financial assets. Today, investment in technology will determine success, as this type of investment depends on an industry that is showing strong growth trends in global currency markets (Pistilli, 2022). This blog provides a comprehensive look at why investing in technology is a stable and promising modern trend. (week 4, week 3)
Having a closer look at the global leading business industries, a new investor would be advised to invest in the technology. According to Hajric (2021), Nasdaq 100 futures were rinsing at the end of 2021 by 2% following the announcement of China supporting economic growth. S&P 500, which rose 1.8%, was dominated by tech giants in its listings (Hajric, 2021). Companies that have primarily contributed to the markets’ rebound were Apple, Amazon, Microsoft, and Alphabet, among other tech companies. Investing in such a company is also a good choice, as these market giants are constantly growing, and any investment will pay off. (week 3)
Cryptocurrency joining the money markets has proven to be an area that deserves the attention of investors. An in-depth analysis of the stock market shows that services such as data analysis, financial modeling, and risk management are showing significant growth (Pistilli, 2021). Artificial intelligence holds its position as the leading technology sector that is growing at the fastest pace (Marcus, 2021). Companies using artificial intelligence in their operations achieved fruitful results during the year, despite the challenges that enterprises faced in 2021 around the world (Marcus, 2021). For example, UiPath, a company that recently began using artificial intelligence, has significantly improved its financial performance, showing strong growth. This is an excellent way to invest since, today, most companies create cryptocurrencies that can be invested in as an alternative to stocks. (week 3)
The concept of investing in technology has monetary advantages associated with the performance of exchange markets and growth potential due to support from other industries. Marcus (2021) indicates that the renewable energy sector, which is closely related to technology by using the most significant amount of innovative developments, is estimated to increase global GDP by 1.1% by 2030. This is a good investment since today, more and more companies are moving into information technology, and there are a lot of new projects that become successful quickly enough. (week 3)
Notably, the growing share of investment in the technology sector could affect sectors such as gold and equities, showing negative correlation trends. Since technology and renewable energy are closely related sectors, investment in these areas will show a positive correlation trend. Experts agree that such a situation will further strengthen the connection between industries and their interpenetration. (week 4)
Investing in technology also shows a high potential for transformational change for companies that use intelligent products. The benefits of I.T. for businesses include increased competitive advantage, productivity boost, greater flexibility, security, and strengthening employee morale (Lanigan, 2020). For instance, productivity boosts and greater job satisfaction are achieved by delegating work to A.I. At the same time, greater flexibility is attained through teamwork on technology adoption, workflow adaptation, and as a result, more smooth and effective workflows (Lanigan, 2020). Competitive advantage is one of the main reasons why companies buy access to A.I., as working without the support of technology slows down the business and leaves it far behind the competition. The motivation for cyber security also matters as companies seek to ensure the safety and confidentiality of their financial, strategic, and other data. (week 4)
Summing up, we can say that the concept of investing in technology is a sustainable and promising modern trend. There is strong demand for intellectual development driven by security, competitive advantage, and improved workflows, which is an essential prerequisite for predicting further growth. Therefore, the decision to invest in technology for a few more years will remain a safe choice and a smart way to ensure a high return on investment. In the course of studying this material, I learned the details of investment trends and confirmed for myself that the area would develop very quickly and help increase the capital of each person. (week 3, week 4)
References
Hajric, V. (2021). Technology leads biggest stock rally: Markets wrap. Bloomberg. Web.
Lanigan, T. (2020). Risks and benefits of investing in I.T. in 2020. Born2Invest. Web.
Marcus, M. (2021). 3 Artificial Intelligence stocks leading the New Wave. NASDAQ. Web.
Pistilli, M. (2022). What is technology investing? INN. Web.