Dec 23, 2024

Our insights

There exists cause for much optimism in the investment sphere as we approach 2025.

Equities both at home and in the US are at the verge of record highs.

So too, gold and cryptocurrencies (for now!) are booming.

After a couple of strong years, real estate growth has slowed in Sydney and Melbourne but remains strong in Adelaide, Perth and Brisbane.

Donald Trump’s return to the White House has had a largely positive effect on stock markets and has undoubtedly been a boon for the US dollar.

At home, a federal election looms by the end of May.

Labor’s re-election or defeat is poised to have a big impact on local markets, given its obsession with renewables and its refusal to commit to nuclear power at COP29.

So what are the investment trends in Australia heading into 2025?

Here are the sectors making noise and the opportunities you should consider.

Artificial intelligence

The world stands at the precipice of an AI revolution.

Companies that adapt quickly to AI, incorporating it successfully within their businesses, stand to boost productivity and quickly gain favour among investors.

Health and biotech investments

Australia’s ageing population has self-interest at heart when it comes to investing in healthcare solutions.

There is also growing global interest in Australian medical innovation.

We remain a leader in biotechnology and healthcare research, offering opportunities in innovative treatments and technologies.

Renewable energy and green investments

The Australian government’s appetite for renewable energy knows no bounds.

It is striving to reduce our emissions by 43 per cent by 2030 and achieve net zero by 2050.

This makes investments in solar, wind and green hydrogen projects look very attractive as well as companies involved in energy storage solutions and lithium battery production.

ESG (Environmental, Social, Governance) investing

Investors are placing a greater emphasis on ethical and sustainable businesses in their portfolios.

An ever growing number of companies are accepting corporate responsibility.

That trend is expected to continue as more investors look for funds and companies with strong ESG ratings and industries that focus on diversity, ethical supply chains and environmental stewardship.

Agriculture and Food Technology (AgTech)

Australia has long had a strong agricultural base.

Now it is leveraging the latest technology to increase efficiency and sustainability in the sphere.

Infrastructure development

Government investment in infrastructure continues to soar so it makes sense to invest in companies that are building Australia and stand to profit.

The lion’s share of the infrastructure budget is being invested in roads and rail as well as digital connectivity and renewable energy.

Melbourne’s Metro (Rail) Tunnel has been built at a cost of more than $13 billion with a further $1.7 committed to its Suburban Rail Loop.

Opportunities abound in public-private partnerships for large scale projects.

Much of it is driven by population growth in Australian cities.

Pay attention to federal and state budgets announcing new infrastructure projects.

Education and skill development

Australia has a strong reputation as a global education hub and this is driving investments in education technology and vocational training.

The opportunities are driven largely by the high influx of international students, the appetite for lifelong learning and the need for upskilling of domestic workers.

Real estate diversification

While the property markets in Australia’s two biggest cities have stalled for now, there are still plenty of ways to invest in the real estate sector.

These are driven largely by Australia’s immigration policy and remote work trends.

While Sydney and Melbourne have cooled, regional centres such as the Sunshine Coast, Geelong and Ballarat are drawing Australians who value quieter lifestyles, away from the big smoke.

Build-to-rent developments are catering to long-term tenants in a bid to ease the rental crisis and meet the increased demand for affordable housing.

And mixed use properties combining residential, retail and commercial spaces are rising in popularity.

Many of these are embraced by millennials entering the property market for the first time.

Your approach for 2025

Regardless of the technological times, economic winds and the policies of elected governments, some staples will always remain when it comes to investing.

Having a robust, long-term strategy is of upmost importance. 

It is critical to diversify across multiple sectors to protect your portfolio from unforeseen downturns.

For best results, engage the services of a trusted financial advisor.

That’s where Calder Wealth Management can help.

CWM are financial planning experts who have been preparing comfortable retirements for generations of Australians for more than half a century.

Let us work closely with you to develop a safe and sound investment portfolio whatever your age and financial goals.

There really is no substitute for quality financial advice from a team personally invested in your wealth accumulation.

At CWM, we pride ourselves on leading our clients into the future with structure, financial stability and confidence. 

Contact us today to discuss all of your financial needs and concerns.

Written by Ben Calder

The information contained in this article is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.

Taxation, legal and other matters referred to on this website are of a general nature only and are based on Calder Wealth Management’s interpretation of laws existing at the time and should not be relied upon in place of appropriate professional advice. Those laws may change from time to time.

Calder specialises in wealth management with a focus on advice, investment, sustainability, insurance and finance.