Currently, your money in current and savings accounts are literally being eaten up by inflation Therefore, it is more important than ever to value your funds. That’s why we put together this ranking of the best investments to help you mitigate the effects of the current economic climate.
When people talk about investments, stocks are sure to be the first thing that comes to mind. Buying stocks in individual companies is not without risk, of course, but if you choose correctly, it can make you a lot of money. The purchase of these assets is mediated by so-called brokers, mainly on the basis of CFDs (contracts for difference). Virtually anyone can open an account, so you’re only a few clicks away from potential earnings. One broker where you can trade shares is eToro.
Read also: eToro broker review
Best investments – Stock indices
Indexes are actually a kind of package of stocks, and their value is thus determined by the price development of the stocks that each index contains. Compared to classic stocks, they have the advantage that the investor does not need to spend hours analyzing individual companies. Some of the best-known stock indices include the NASDAQ technology index or the S&P 500. As with shares, you can buy individual indices, or CFDs on them, from online brokers such as Tradematics.
Don’t overlook: Tradematics broker review
Buying and holding dividend stocks
Another option is to buy shares in companies that pay dividends to investors from their earnings. These include well-known global companies such as Apple and Microsoft. For an established and long-growing company, dividends are a kind of income guarantee, plus the value of your asset portfolio increases if the price of individual shares rises.
Best investments – Forex
While this investment carries more risk than the ones mentioned above, it has the potential for faster and even higher returns. It involves pure speculation on the future development of individual currency rates. Before you start investing with Forex, be sure to educate yourself properly to avoid any setbacks and above all, only trade with money you can afford to lose. Most of the internet brokers provide the option to trade Forex.
Best investments – Real Estate
The number one long-term investment according to many is real estate. Although you need a substantial capital to buy them, the returns from renting them out are virtually unlimited in time and, moreover, their market price often rises. Many investors also find it attractive to borrow part of the investment from a bank and then pay back the money from the rent.
Cryptoassets are another high-risk investment. These have become a phenomenon in recent years and are thus the freshest new thing in the markets. Their flagship cryptocurrencies are also known to the general public, Bitcoin and Ethereum, but you can trade hundreds of them. One of the brokers offering investments into cryptocurrencies is a company called Gulf Brokers Ltd.
Also read: Gulf Brokers Ltd. review
Best investments – Penny stocks
Penny stocks, translated as “penny stocks,” are securities of companies that trade for minimal amounts. These are usually securities of companies with a rather unflattering or minimal history in the financial markets, which is why they are so cheap. It is thus an investment that can often be a loss-making one, but it requires a very low minimum deposit and, if successful, you can expect a very high return.
This asset class includes energy, precious metals and fuels. As they are most often also offered in the form of CFDs, it is therefore crucial to correctly estimate the future price development of the asset in order to make a profit. You can trade commodities with a number of brokers, including Instaforex.
Do not miss: Instaforex broker review
Best investments – Startups
Putting capital into new companies that you believe in for future growth can be a real coup when you negotiate favourable terms with their representatives. However, it is essential to find out all the information about the company’s operations before investing, as many startups end up failing despite a good business plan.
Best investments – Corporate bonds
Some companies try to raise capital by issuing bonds. These usually have a much higher yield than, for example, government bonds, but the investor is exposed to much more risk. Since the possible demise of the company could have unfortunate consequences, this investment must be properly considered.