Hive5: Consumer loan demand will remain high in 2024
Demand for consumer loans is expected to stay high next year, despite inflation easing and wages set to increase, according to peer-to-peer lending platform Hive5.
The cost-of-living crisis is set to continue into the New Year and with the investment landscape continuing to evolve, investing in consumer loans ‘can stabilise investment portfolios in uncertain times’, Hive5 wrote in a post on its website.
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Highlighting potential opportunities and challenges in 2024, Hive5 said investors should be cautious of a looming recession, with historical data suggesting that rapid rate hikes often precede recessions.
Meanwhile, with the S&P 500 reaching a four-month high, it’s expected that the index will continue its momentum, with corporations successfully adapting to changes in central bank policy. In particular, Hive5 suggested that investing in cybersecurity could be a good choice in 2024, as these continue to be strong performers, benefiting from the escalating cyber threats.
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“While high-yield investments like bonds could look attractive now, maintaining a balanced portfolio is essential,” the platform said. “Recent increases in bond yields make them a pretty option, but avoiding over-concentration in any asset class is very important. Striking the right balance is the key to shielding investors from potential risks.”
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