Where can I put my money to work during a recession?
With the impending global financial crisis and the resulting uncertainty for many investors, it’s somewhat reassuring to entertain the idea that investing can potentially still provide you with some benefits until its arrival. However, everything becomes significantly different the very moment we decide to put that idea into practice, leading to the very common concerns about risk.
In any case, with the right choice, correct capital management and a strategy with clear and achievable goals, every situation can be improved. But, where should you start?
Where should you put your money to work?
Among the investment options explained below, you will find some with short-term results and others with longer-term projections.
During a crisis, the future can seem turbulent, but if your short- term avenues’ return are not providing you with the desired risk coverage, then it’s time to consider the larger maturity period investments, and therefore, diversify your portfolio and increase your risk protection options.
This means that, if you can choose the right options and bet on a strategy that combines short and long return periods, the results will be very interesting.
Furthermore, we’ll also be showing you the recommended avenues to invest before the recession starts:
- Bonds and Shares
State Treasury securities are a safe way for many investors. In particular, Germany and U.S. bonds are the most demanded. In nominal terms, these bonds are giving an annual return of 2% and to this day, they’re practically risk-free.
Investing in stocks is also a good way to get a company’s share percentage and make a profit from it. However, according to specialists, stock investment is not highly recommended for small savers, due to transaction costs being generally high.
Futures have been causing expectations on the investment landscape for some time. The futures’ market is a very interesting alternative, which is mainly controlled by investors with two clear profiles. We have investors who use these operations speculatively and others who use them as hedges.
In this market, you will find multiple options to invest in. So, if you’re looking to have a well-diversified investment portfolio, this option may interest you a lot, since you can negotiate the underlying assets with prices of both national and international markets, stock index, raw materials, among others.
As always, gold investment should be highlighted as an option to obtain long-term ROI. Gold has always been a safe investment that is concurs with investors, especially during recession times. If you decide to invest in gold you must know beforehand the metal’s underlying characteristics and how the value will depend on the amount of fine gold (purity) it contains.
- Last but not least
These investment options may be safe, but if you consider yourself a visionary, there is a rising trend making waves in non-traditional markets. Bonds and Futures are fine but they earn nothing beyond inflation. Also, gold prices tend to remain mostly the same and can be susceptible to negative fluctuations, making it more of a saving instrument.
So, what are these non-traditional investment that we’re talking about? well, there is a company among the trending FinTech sector that’s developing a new form of digital asset, a New Asset Class, created for private companies to have more access to capital markets around the world and for investors to have a liquid-tradable instrument.
If you want to reach the next level of risk protection for the impending recession and learn more about this company that have overcome the current financial world limitations, but also works within it to redefine it and generating serious profits for its investors, click on the link and learn more about this once-in-a-lifetime opportunity.