Published by FrankNez Team.
When the markets are going well, no one ever thinks of diversifying their portfolio. They feel that the longer they can hold on to the growth, the better will be the gains and profit percentages. That is all well and good, but what happens when the markets are not going in your favor?
Take the current situation that exists in the world, for example. You have high inflation everywhere. The United States is in the midst of its highest inflation ever. Elsewhere, the Euro has become equal to the Dollar for the first time ever. Things are not looking good.
Not to forget the Russia-Ukraine War that has entered its third month and is causing severe economic depression in different parts of the world. We should also not lose sight of the fact that we are just about to come out from a pandemic!
When global economic affairs are in disarray, the need for diversification becomes even more important. In this article, we are going to look at five profitable investment opportunities that investors looking to diversify should check out.
List of 5 Great Investment Opportunities for Investors
#1. Investing in Index Funds like S&P 500 or Dow Jones
Investors that are not looking to bet against the market but are rather looking at stable and safe growth options should look at Index Funds.
This is a safer option and does not come with the same set of risks as mutual funds do.
You can always look at index charts and get an idea about how the markets are moving.
When the fund gains, you gain.
When it goes down, you take a hit.
However, the growth is definitely there, and the safety is an added attraction.
#2. Investing in Real Estate (Residential and Suburban Real Estate)
To be honest, the demand for real estate is never going to go down.
Even during and just after the pandemic, the real estate industry saw record growth margins.
With a limited percentage of land available on the planet, picking up residential real estate should be on top of your list.
The pandemic necessitated the demand for larger homes.
This prompted a boom in suburban real estate.
If you have cash lying around, this might be the best investment decision ever.
Try to avoid commercial real estate for now.
#3. Investing in Company Stocks and Shares for High Growth
While stability and safety are something that all of us look for, there are times when we want to gamble a bit or take an informed risk.
This is why diversifying by investing in direct company stocks and shares is a great option.
If you had invested $1000 USD in Tesla Stocks five years back, you would be sitting on 10X profit today!
That is the beauty of investing in stocks.
When it goes your way, nothing else can even come closer to the profit margins.
#4. Investing in Commodities, Forex, and Precious Metals for Safety
Most seasoned investors have a soft spot for commodities as well as precious metals.
They try to ensure that they pick up these investments for two main reasons.
Commodities like energy are always going to be high in demand, given the scarcity of their existence in the first place.
You can also consider investing in scotch, to benefit from its
appreciation in value over time, driven by factors such as limited
production, increasing demand, and the prestige associated with certain
rare or aged bottles.
Secondly, precious metals have historically been considered as a protection against rising inflation.
Given the levels we have right now, investing in gold might be a good option as it will help you guard against high inflation.
#5. Investing in Cryptocurrencies and the Blockchain Network
Before you jump to conclusions, you should note that investing in cryptocurrencies is still very much favored among investors.
The best part is that since all of them are trading at low figures, you can pick them up without giving them much thought.
If you want to invest in something solid and long-term from this ecosystem, opt for Blockchain technologies and startups that are working on them.
This is the future as far as technological advancements are concerned.
The Bottom Line
You should never put ‘all your eggs in one basket’.
This is because if it falls, you are looking at insurmountable losses, and you’ll have to turn to line of credit, title loan, or home equity loan.
Rather, if you diversify, you increase the number of avenues that you can expect growth from.
You need to remember that not everything will go down at all points in time.
Some will rise, and some will fall.
That is the nature of things and investments.
If you would like us to assist you in investing in index funds, please reach out to us in the comments.