How can you form a sustainable investment portfolio that will ensure your future financial benefit? First read investing for beginners.
Investment is a form of financial engagement that can yield potential huge amounts for the smart individual. Alternatively, investment can also pose problems and if not done correctly, can lead to a long-term loss of equity. How can you make smart investments? How can you create an investment portfolio that is reliable and that will make you a steady return for your future? There are many sound investment ideas, and the list below is 5 options that should prove favorable. Start by tracking your savings, investments and budget with Personal Capital.
Staple Goods – The sure-fire option
There are certain goods that never waiver in demand. Even in times of recession, these goods are still required therefore the relative stock value should never drop dramatically. Examples of staple goods include bread, paper, milk, and sugar. Historically, staple goods provide a steady return on investment and are a great slow moving stock option for a long-term gain.
Foreign Currency – The potential big earner
Forex trading is an ever-expanding market that many people dabble in. Foreign currencies fluctuate in value continually and money can be made trading these currencies when the value is favorable. Emerging nations whose economies are developing are a prime target for currency investment. As these nations are experiencing growth, the value of their currency should improve conversely. Always remember that the forex market requires attention and an understanding of the general economic climate.
US Equity Sectors – The future option
Despite an amount of uncertainty due to the recent election, the US still holds a commanding position in the global market. Equity is an area of investment that should see an 8% rise during the next year and as commodities like oil stabilize in price, this fuels further growth and stability for the economy. Open a brokerage account with Trade King.
Financial sector – Continued performance
Banks and financial institutions continue to perform well and their success only looks to improve in future years. Financial stocks have seen great growth as a result of the US election result and some stock values have risen as high as 18%. Don’t expect this level of continued growth in the long term – It is not sustainable, however, if the new government proceeds with a lessening of banking regulations, this can only be a positive outcome for financial institutions.
Property investment – The long game
Although property is not a huge investment and the returns are lower than over forms of investment, it is still a viable option. Buying your own property can only help to improve your future prospects – You will own a house and will have a large chunk of capital that you can rely on. Furthermore, a mortgage will cost less than the relative expense of renting a property, and there is an actual financial benefit at the end of the term too. Consider purchasing property as a long-term investment that will provide you with a steady gain.
When considering any investment, it is important to remember that there is no guarantee of a return! Always exercise caution, research your options fully and make an informed and intelligent decision.