Hot investing trends that have fizzled
Some trends are good investments. Clean energy will one day overtake traditional energy, because of government support. Healthcare and biotech will continue to evolve because of technology. The list of invest trends is long and some of them have spectacular results.
And then there are others...
Some of them are just too early. Like the internet in 2000. There is real value in the internet, but in 2000 the wave was too early.
1. Online fitness
Peloton, Mirror, FitBit.
Fitness will always be a hard space to make profitable. A lot of consumers know they should workout, but they do not enjoy working out and so they come and go. A lot of companies have died trying to make it in this space.
2. Metaverse
There are several things working against the Metaverse. The hardware is bulky. Users have not found the Metaverse to be a necessity. It has not moved beyond the gaming space.
There is not going to be just on Metaverse. It is going to be several different companies providing their version of the Metaverse.
Roblox is a great example of a Metaverse that is working.
This could still be a good investment, but right now it is too early for this space.
3. Crypto
This is another one where investors may have become too excited too early. There are real use cases for crypto in the real world. But investors may have gotten too heavily invested too early. Crypto does appear to be trying to make a comeback in 2023.
In the long run it might not be a bad idea to dollar cost average into crypto and make it a small portion of your portfolio.
4. Fintech
How the mighty have fallen.
COIN, HOOD, SQ, PYPL
These were some of the best performing stocks on wall street at one point. But that was during low interest years. Now that SVB has collapsed and interest rates are rising, consumers are being more cautious with their funds.
5. 3D printing
It takes a lot of money to setup, maintain and run 3D printers in a profitable fashion.
6. Online news
The number of media businesses that have shutdown keeps growing. Online news seems like a good idea. Low barriers to entry and low startup costs. But the problem comes when you start scale. There are already many large well funded news orgs with large audiences that are loyal to their brand. It is hard to get users and advertisers to become loyal to your brand.
7. Electric Vehicles
Wow.
There was a moment where every new public companies was a new EV manufacturer. Turns out that manufacturing vehicles on a mass scale is a difficult thing to accomplish and require a lot of money.
8. Virtual assistants
I'm talking about Siri, Alexa, Google, Cortana. The underlying companies are still good businesses, but it seems like these assistants were the first version of AI that never really caught on.
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