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.
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.