Investors have had it rough recently, with 2022 being one of the worst financial years for some time. Despite the economic crisis still sweeping through America, there are ways to fight back against losses in 2023. The reason investors can reclaim some of their losses is by exploring long-term investment options, which may not feel like an immediate win but beats looking at a portfolio in helpless despair.
Exchange Traded Funds (EFTs)
If you’re not already investing in EFTs, you’re missing out on one of the most popular investment opportunities of the last few years. The best part about EFTs is that you can buy in at a minimal cost buy to get access to a diversified portfolio, which gives it an edge over mutual funds. As well as this, EFTs have access to hundreds of different asset classes, and there are plenty of choices to choose from as well.
Seeing as we’re talking about long-term investments, you may be asking why we’ve included short-term bonds. If we weren’t in 2023, you’d be right in thinking that long-term bonds hold higher interest rates. However, we’re currently in the midst of an inverted yield curve, which is a pretty rare scenario that means short-term bonds are favored over the long-term.
There are hundreds of asset classes, which means there are plenty of viable options instead of pumping money into the stock market. These types of assets include cryptocurrencies, commodities, art, private equity, collectibles, hedge funds, and much more. If you are choosing to invest in a market like commodities, we recommend you sign up to hear more from James Cordier now and allow his team of commodity enthusiasts to help you get the most profit out of your investment.
When the financial waters are looking choppy, dividend-paying stocks are the best vessel. Stocks that pay dividends are usually giant corporations that can easily deal with a few rough years – think Amazon and Coca-Cola. Simply by holding your money, you get rewarded with a regular payment, which is decided by a company’s shareholders and is announced ahead of time.
Real estate is always chasing down the stock market, but it’s currently one of the most profitable investments you can make. There are many ways to invest in real estate, but the individual property route requires an enormous amount of capital. Whereas, if you choose to invest through a real estate crowdfunding platform, you can diversify your portfolio while gaining expert property management.
Some companies are predicted to increase in value much faster than others, and that’s even true during the current economic climate. If you choose to back prospective growth stocks, you can profit exponentially on the back of the company’s success. However, there’s high risk associated because there are zero guarantees the company will break into the predicted success trajectory.
If you’re an investor looking to protect your assets while surviving the current economic turmoil, then look no further than making the investments outlined above.