Noted investor and entrepreneur Alexander Dillon sees plenty of opportunities for growth investments in 2023.
Investors continue to grapple with high market volatility, inflationary pressures, political unrest, and the lingering after-effects of COVID-19. When determining where to invest, Dillon recommends proven assets and opportunities likely to thrive regardless of the economy.
Alexander Dillon has made a career out of shrewd investment decisions. He earned a bachelor’s degree in economics and finance from the University of Maryland before embarking on a career in finance. He is the president and managing member of GenCap Management, based in greater New York City. He is also the chief investment officer for Blackbridge Capital, LLC, a firm he started in 2012.
During his career, he has invested in 100 companies of varying types and sizes.
Here is a closer look at some of the business opportunities Dillon believes in for the rest of 2023.
Despite steady rises in interest rates, real estate remains a smart option. That’s especially true for those with cash available for lump-sum down payments. Real estate investment trusts (REITs) work the same way, without needing to pay down expenses and fees. Instead, REIT investors own a portion of the real estate rather than the entire property.
REITs provide an inflationary hedge while continuing to invest. Demand in many urban markets continues unabated and will likely remain so, especially in the residential market.
E-commerce continues to forge ahead, unabated by economic shifts or downturns. The pandemic fueled a resurgence in e-commerce that remains strong today.
With both B2B and B2C e-commerce thriving, there’s a growing need to optimize these services. That’s where third-party logistics, or 3PL, comes in.
3PL providers offer logistics, operations, sourcing, transportation, fulfillment, and other services essential for e-commerce success. These services often use digital platforms to optimize supply chains, reduce shipping costs and manage inventory. It’s a booming opportunity to help large and small businesses get the most out of their logistical operations.
While prices for certain goods have skyrocketed, the demand for basic consumer staples persists and will continue to do so.
We are unlikely to see the runs on toilet paper that dominated the pandemic’s early days. But groceries, clothing, and other necessities are still in high demand.
Price hikes were consistent across the board, meaning customers did little trading down to generic or cheaper products. Instead, they continued to weather the storm with purchases of the familiar.
While that approach may seem counterintuitive, it is primarily to persist if inflation is consistent across the consumer goods industry.
In 2022, unemployment was low, and consumer savings were high, meaning there was little risk to companies as prices rose. That may not be the case if inflation persists in 2023. However, investments in consumer staples are wise now and for the foreseeable future.
Home improvement is a wise choice, with uncertainty still so persistent within the market and economic outlook. While many people will opt for new homes, others will commit to home improvement as an alternative option.
The construction trades continue to be in high demand- that means opportunities to invest in repair and remodeling services and suppliers.
Investments in firms that provide these services and products are another excellent option.
Alexander Dillon sees significant opportunities for capital business investments during 2023 and beyond. These are just a few of his recommended options for investors looking to reap substantial returns.