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Believe it or not, we’re almost at the new year. With 2022 just around the corner, we wanted to run through a few of our favourite sectors to keep an eye on for the coming year. Within these sectors, we see top stocks driving performance, that can be considered for an investment.

Still finding value in the tech space

The first sector to consider in tech. This might sound like an overly familiar sector to be finding growth options for the coming year. However, despite strong gains in recent years, we don’t see this reversing in 2022. 

With this being the case, we would still be selective in the areas within tech to target. For example, we’d look at exposure to electric vehicles, via companies such as Lucid Motors and Rivian.

We’d also look to FinTech. The paradigm is shifting away from traditional banking models and towards online and pure digital banking. Not only this, but also with regards to specific finance areas. These include disruption in mortgages, lending, cross currency payments and much more. As more of these FinTech firms go public, we think there’s plenty of room for these top stocks to run higher.

Jumping on the metaverse bandwagon

We think that the metaverse is worthy of tagging it as its own sector for 2022. Some of these companies also overlay into tech, but we feel some VR stocks are uncorrelated to options mentioned above, such as EV stocks.

For the metaverse, we’d look to top stocks such as Roblox. The game designer and VR facilitator should continue to grow the user base, and therefore the viability of the alliterative universe.

For investors that aren’t completely comfortable taking such direct exposure, lower risk options are available. For example, companies like Nike are investing via creations in the virtual world. Nikeland within Roblox is a case in point. Therefore, if the metaverse grows, Nike shares should indirectly benefit thanks to the exposure it’ll get (and revenue) from being present in the universe.

Playing it safe with utilities

The final sector that we like for 2022 is utilities. This might seem rather drab considering our discussions above relating to the metaverse. However, with plenty of uncertainty in the stock market as we go towards 2022, having some safer plays in the portfolio isn’t a bad idea at all.

We’d consider companies such as National Grid and SSE. Not only should these companies perform well if we see another economic downturn, but they also pay out income. With generous dividend yields, the income can be used to offset the impact of high inflation that we are seeing both in the UK and the US. We discussed this in more detail here.

Overall, we’d look to selectively buy stocks in all three of the above mentioned sectors as we head into the new year.

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