Amidst heightened uncertainty in the stock market as we start 2022, many investors may be wondering where to place their money without taking extreme risks. Factors like the debt ceiling, climate crisis, student debt and federal spending remain the largest threats to the market, but financial advisors and market experts have been keeping an eye on the small-cap industries that might be worth taking a look.
Along with the pandemic there has followed an increased interest in developing medicine to treat the various diseases that have arisen, most obviously, COVID-19. While there are definitely risks associated with the industry, these companies have been advancing modern medicine as we know it. A few stocks that have been recommended in this industry are Dynavax (NASDAQ: DVAX), Viridian Therapeutics (Nasdaq: VRDN), and Novavax (Nasdaq: NVAX).
Internet of Things
With smart devices being more and more prominent in daily life, the Internet of Things (IoT) becomes more and more lucrative of an industry to invest in. The IoT refers to the devices and systems that communicate with everyday technology by connecting to data centers. One small-cap IoT stock that investors are watching is Impinj (NASDAQ: PI) – a company which makes radio-frequency identification (RFID) products. According to IDTechEx, the company is expected to grow by $13 billion this year from $11.6 billion worth in 2019. With the majority of its clients being retailers, who suffered during the height of the pandemic, Impinj faced slightly lower financial results in 2020 and into the first quarter of 2021. However, investors are still saying this company is worth watching as it moves to get more consumable objects connected.
Renewable energy has been named one of the fastest-growing energy sources in North America, and is being accelerated by federal government funding. Investopedia names Advent Technology Holdings Inc. (NASDAQ: ADN) and Canadian Solar Inc. (NASDAQ: CSIQ) two fast-growing alternative energy stocks for Q1 2022.
Other emerging industries that are expected to grow in 2022 include cloud computing, artificial intelligence, and data analytics. While the risks of investing in stocks within these industries may vary, investors who can afford taking those risks may benefit this year.
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