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29 July 2024
What to invest in 2024
Best investments of 2024. What to invest in and the reasons why.
Most people are aware of the current market situation. A recession is already here, according to most economic experts and the UK stock exchange is down by more than 12 percent already this year as investors are still waiting for the other shoe to drop.
Does this mean that the best strategy is to hold on to your money or is it better to invest in something that has proven to provide high yields during dire times like these? Well, there is one sector right now that should be a given in your portfolio.
We are, of course, talking about energy.
In case you have been living under a rock for the last year and missed Russia’s invasion of Ukraine and the immense energy crisis all of Europe is about to witness, it would be safe to say that any energy-investment is pretty much the safest bet there is right now and could potentially yield high returns in a short to intermediate time span.
The cold upcoming winter will most likely pump the prices of energy up by what experts estimates 120% – 180% and the new “green” initiative of nuclear power is estimated to take between 7 – 12 years until we start seeing new Gen-IV reactors provide the energy Europe desperately needs to satisfy future powerconsumption.
The S&P 500 energy sector is already up around 46% this year. Yes, you read that correctly. This is before what is expected to be the most “energy deficient winter” since the oil crisis of 1973.
Does this mean that the best strategy is to hold on to your money or is it better to invest in something that has proven to provide high yields during dire times like these? Well, there is one sector right now that should be a given in your portfolio.
We are, of course, talking about energy.
In case you have been living under a rock for the last year and missed Russia’s invasion of Ukraine and the immense energy crisis all of Europe is about to witness, it would be safe to say that any energy-investment is pretty much the safest bet there is right now and could potentially yield high returns in a short to intermediate time span.
The cold upcoming winter will most likely pump the prices of energy up by what experts estimates 120% – 180% and the new “green” initiative of nuclear power is estimated to take between 7 – 12 years until we start seeing new Gen-IV reactors provide the energy Europe desperately needs to satisfy future powerconsumption.
The S&P 500 energy sector is already up around 46% this year. Yes, you read that correctly. This is before what is expected to be the most “energy deficient winter” since the oil crisis of 1973.
The euro-area annual inflation rate was 9.1% in August 2022, up from 8.9% in July. A year earlier, the rate was 3.0%. European Union annual inflation was 10.1% in August 2022, up from 9.8% in July.
Pulling out of the market will therefore ensure that your savings will lose value and since the classic 60/40 portfolio (60% stocks and 40% bonds) may no longer provide the same level of returns that it delivered previously, investing a part of your portfolio in the energy sector looks very promising during 2024 from an analytical standpoint.
In conclusion.
Demand for energy will likely not decrease going forward. The global society is steadily increasing its energy usage and with the turmoil building up in Eastern Europe it will certainly only keep pushing energy prices one way. Therefore, investing in energy is widely regarded as a low risk / high reward investment of 2024.
Walton Finance has resarched some of the best energy companies to invest in right now. Scroll down for the list of our 3 top picks.
Waltons top 3 picks of energy-investments 2024
*The Walton Finance Blog takes no responsibility for any and all investments made by anyone reading our articles.
1. NEXERGY HOLDING PLC
U.K Based
Pros
– Great annual growth
– Early investment can give high yield
– Both fossile fuels and renewables
– Innovative technology
Cons
– Not yet well-established in the public market
– Potentially medium to high risk
Nexergy Holding PLC is expected to list on the AIM Market stock exchange within next fall. With its Swedish inovation in renewable energy and also a steady foot in existing & reliable energy such as oil and coal, we expect investors to see a high yield in the year to come. According to their website , stocks are now sold at 0.45£ a share in the first round before their IPO.
2. Occidental Petroleum (OXY)
USA Based
Pros
– Well established
– 120% YTD Returns
– Relatively low risk
Cons
– Could be over-invested
– Operating in mostly oil
Occidental Petroleum Corporation is an American company engaged in hydrocarbon exploration in the United States, and the Middle East as well as petrochemical manufacturing in the United States, Canada, and Chile.
3. Huaneng Power International, Inc.
China Based
Pros
– One of the largest energycompanies of Asia
– 49% YTD Returns
– Good prospects
Cons
– Could be affected by Chinas real estate crash
– No renewable energy
– Low innovation
Beijing-based Huaneng Power International Inc, together with its subsidiaries, generates and sells electricity and thermal heating services to regional or provincial grid companies in the People’s Republic of China and international markets. The company generates power from gas turbines, hydro, wind, photovoltaic, biomass, coal, solar, and oil resources. Additionally, the company sells raw and processed coal.
Other honorable mentions
4. Valero Energy – 42.3% YTD Returns
5. ConocoPhillips – 41.8% YTD Returns
6. Hess – 47.2% YTD Returns
7. Coterra Energy – 37.5% YTD Returns
10 responses
Nexergy will be HUGE. Get in before its to late.
Dont invest in OXY ! Its pure evil !
Buy Bitcoin when its low. it will go 100x. Energy is boring.
Already invested in energy. Nexergy looks really nice tho. Wonder how their IPO will go.
Investing in anything in china right now is a bad move tho.. America too. The dollar will collapse any day now. Stick to Europe or scandinavia. Sweden has insane numbers during last recession in 2008. Good article. Energy is a smart move right now.
I knew energy would be a good investment since february. Energy and real estate.
Allready own stocks in Nexergy. I expect the stock to be 10x after their listing.
I just wished i waste all my money in the cryptocrash and invested in what keeps all the crypto alive.. energy..
Great article. Short, consistent and true.
Nexergy will be Huge after their IPO. I have just read trough their promemoria.