Should you invest in the stock market right now?
If you plan to invest in the stock market on this early 2020, you should be aware this is one of many options for investing your money. And also, from day trading shares to the buy-and-hold long term investment, it does come with substantial risk, especially in the short term.
Even if the general perception is one of huge potential for stock trading and although highly popular, investing all of your money stocks of several or a single corporation is very risky: You can quickly lose most of your money, but you can also get vast returns.
Additionally, if you take into consideration the current situation, things get murkier.
The stock market in 2020: The end of the bull run?
Last year’s bonanza has left its fair share of uncertainty for the coming months
In 2019, financial markets overcame widespread political turmoil and mounting fears, many believe that the global economy posted their record highs last year.
Looking ahead to 2020, many investors expect further rising asset prices, but:
- The US presidential election.
- The US trade war tensions with China.
- Oil’s volatility.
- And Soleimani’s termination.
All of these factors combined will most likely bring nasty surprises over the next 12 months and give the long-running bull its end.
An almost certain fact is that, the double-digit returns of 2019 will be hard to replicate. Despite the trade war, political turmoil and more, almost all major stocks just posted a once-a-decade performance.
Many professional prognosticators think that the chances of repeating the deed by investing in the stock market, are very slim.
As we all know, bull markets usually end with sharp declines. Recessions are an inevitable part of the business cycle, so, no one is surprised that some economists have spent the last couple of years warning that the bustling world economy would finally begin to decline.
So far, that hasn’t happened, but is very likely that next year the bear will finally come out of its cave.
Other downsides to investing in the stock market
You may think that these reasons we just listed cover about all the current negative aspects of stock trading, but the fact is that you’ll still have to deal with nuisances such as:
- Incorrect portfolio diversification.
If you just stick to investing in the stock market and even if you’re certain you’re investing in the best stocks, all you’re doing is holding a bunch of different stocks in your brokerage account.
Without the proper advantage, a clear channel with the company you’re backing and access to the properly standardized financial information… you’ll essentially be gambling.
But then, what alternative to investing in the stock market can produce the highest return of investment?
With the world and stock markets’ current situation, this is where diversifying your portfolio comes into play.
Portfolio diversification: The best kept secret.
You can’t’ be truly diversified unless you’re aware of the advantages of alternative investments, and one of the options with highest return of investment is private equity investing.
Those ignoring or without access to private equity are missing out on significant investment opportunities that could improve retirement assets. The hard part is that the private equity market is one where regulators have been traditionally shut out.
But since the SEC recently issued a proposal stating their desire to expand retail investor and retiree access to private equity and venture capital, this will likely change the qualifications for investing in these funds, making it easier and less risky for small investors to buy private equity shares.
In many cases, private equity offers come with certain sales restrictions, sometimes specific conditions are imposed for the share’s sale forbidding it for days or even years after the company begins its participation in the public stock market.
Nonetheless, there is an investment avenue out there that can represent a better and safer choice for than the best stocks available, a mix between:
- The liquidity of a publicly-traded stock
- And the advantages of private equity.
We’re talking about a New Asset Class introduced by Konzortia Capital, a holding company for a fintech consortium that -with its private sale of preferred stocks- aims to redesign the financial world that everyone takes for granted.
The best part? You still have a chance to participate on their private sale phase, which means they’re offering to visionary investors the opportunity to participate at their ground-floor level with special advantages and preferences.
Click on the link below and find out why this private company is the best alternative to investing in the stock market, with the highest return of investment.