Let's first come clean here. Ask any sane independent financial
advisor and they'll tell you the markets are strange lately. There's a
lot of unexpected events going on, and it's affecting the ebb and flow
of wealth around the world.
However, that doesn't mean
you have no options available. There are plenty of places and markets
where investing is still a sound move. Here's a breakdown of some of
them.
WHERE TO INVEST
First off,
there's cash investing. Once upon a time, this was a bad idea, but
nowadays, cash investing can be a good idea, with some caveats.
You
don't want to invest in cash except as a way to preserve capital.
Growth isn't what you should be expecting here, even if it can sometimes
actually do that. Go for money market funds or CDs here, because with
rising interest rates, there's a lot of potentials. financial advisor perth
Considering
dipping into stocks that are undervalued. These are marked by having a
low price-to-earnings ratio, despite having companies with serious
potential.
In various sectors, there's always more than
a few undervalued stocks. These can offer you a low price to get in,
but the possibility of high returns. China Mobile is one such example,
along with Mattel and Hanesbrands.
Whenever possible, don't invest in a trend, but in something permanent.
Another area to look into would be bonds.
It's
easy to buy bonds, so we recommend mixing up both quality and maturity
to increase the eventual yield. Choose some that are private and some
that are public, so you have a good spread of sources. The ROI is much
smaller, but bonds traditionally are more stable.
Municipal
bonds are competitive these days. Corporate bonds are also good, though
you'll want to look into ones that take longer to mature to maximize
yields.
Take a look at the global growth sectors.
Emerging markets can be a great place to invest. Among the fastest
growing these days are China, India, Indonesia, and Russia.
The
growth is much faster than in more developed countries, so there's a
huge potential for profit. If what you're after is explosive growth
before you opt out with your profits, this could be an area to consider.
Finally, there's always the old standby of real estate.
Specifically,
purchasing or investing in income property. They can be a huge buy-in,
but the stability of their returns over time is worth it. Worst-case
scenario, you can attempt to sell the property after a period if it
proves too hard to manage
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