4 Best Investment Strategies In 2020

best investment strategies

The year 2020 promises uncertainty in business, taking into account both geopolitical and economic situations. Low-interest bank rates, the slowdown in global economic growth, the presidential election in the US, COVID-19, and other factors will determine the prevailing conditions of the financial markets this year. 

When it comes to investments, profiting as fast as possible should not be the matter. If you selected several sources of income intending to make money, you need to remember that little patience goes a long way. This philosophy should be followed, although some business people are ready to get a more significant reward for taking higher risks. 

Over the short term, your income might not be very noticeable, but this way of thinking will more likely lead to the desired results later. You should always pay due diligence when you start a new investment, which can be of various types. Taking time to achieve a particular goal is one of the best decisions you can ever make. Buy essays cheap and save your time for more prospective affairs. 

Despite the difficulties and challenges, it is time to consider and strengthen financial strategies. Where to invest in 2020 and make a profit? What strategies should be chosen in these conditions? Best ways for investing remain pretty much the same from year to year. This list might look familiar to you since the main directions for long-term investment always stay on track. 

1. Stock 

In 2020, it is worth buying stock and shares of various companies. Throughout the past century, investments in reliable and most successful enterprises in the world have been a successful strategy. Buying and selling stock should be a familiar and constant activity for a business person. You should invest small amounts of money in the financial market regularly. At present, it became easier, since online brokers have reduced their fees. 

In 2019, stock prices grew by 25% on average. It may seem not enough if your time frame is limited to one year. If you purchase stocks of a promising company today, it does not mean that you will receive tremendous profit at the end of this year. It is worth considering investing in stocks for ten and even twelve years. The funds invested now will bring you much more in ten or twelve years. 

Carefully study each particular stock you are going to buy. Pay attention to companies with long experience in paying dividends and moderate debts. Use tax records to calculate average costs in broad index funds. Managed growth funds should be taken into account if low-cost ones are not part of your strategy. Also, start building up passive income by investing in dividend growth. Financial newsletters and briefs can help you choose the right stock for your investment. 

2. Real Estate 

In the long run, real estate can be even more profitable than stocks. You can get income from capital growth and subsequent lease, as well as significant tax benefits. Several methods to deal with the realty can be used, like buying, mortgage, and private funding, secured loans, and so on. All of this can provide you a lot of opportunities. 

You might want to look at crowdfunding platforms related to real estate, like Fundrise. In this way, you can become the co-owner of high-profit realty for several thousand dollars. Accredited investors, who are looking for more substantial deals in foreign markets that can bring higher returns, are advised to visit such websites, as EquityMultiple, CrowdStreet, and RealtyMogul. 

3. Inexpensive Side Business 

Launching an additional business usually is considered to be a beneficial undertaking. You should try not only to do what you like but also strive for additional revenue. The expenses for opening a small enterprise can be as little as several hundred dollars. The real value of the new venture is measured by the time and effort that you spend on its development. The possibilities are countless thanks to Internet access and all available information that comes with it. You can try making money, for example, using Amazon, eBay, Upwork, Etsy, Fiverr, and other platforms. Launching a local business can also be an excellent solution. 

Use what you enjoy — sports,fashion, computers, arts, and so on. Think about building a business related to one of your hobbies. Explore how people with the same interests make money. It may not work out right away, and you can fail. But it is better to try again. Spend less money and devote more time for implementing your ideas. 

4. Alternative Ways Of Investing 

Besides traditional stock and bonds, contemporary technology created a new generation of investment platforms. Recently, realty crowdfunding and peer-to-peer lending have appeared as new approaches. Such models are also suitable for other types of assets. 

Some of these methods look like experiments due to the novelty of approaches. However, crowdfunding investment may become a common occurrence in a few years. Using it today can give you an advantage. Here are several promising options for investment that are worth considering: 

Agriculture and Farm Land 

Crowdfunding is already being applied for agriculture. Nowadays, this method of financing is more accessible, thanks to advanced legislation and optimized technology. As an example, AcreTrader can be used for investing in this area. 

Blue-Chip Fine Art 

Works of fine art are an ancient type of an asset, and previously, it was mostly unaffordable for ordinary people. Recently, the Masterworks platform offered crowdfunding as an investment solution enabling all interested people to purchase shares of famous works of art for a profit. 

Alternative Investments 

Today, the YieldStreet project is one of several most innovative options for alternative investment. This online resource offers multiple types of options in one place. Using this platform, you can invest in realty, legal services, shipping, loans, and works of art. The website became so in demand that presented offers are quickly taken up. The alternatives on this platform are unique, but not all of them are appropriately verified and legal. 

Small Business Startups 

Some investors who do not mind higher risks may decide to invest in startups at an early stage of their development. Here, you need to remember that most startups fail during the first iteration. However, many entrepreneurs are looking to finance new ideas. It may happen that the next Facebook or Google is going to appear thanks to a particular startup.

Bootstrap Business Blog Newest Posts From Mike Schiemer, Guest Posts, & Blog Outreach Services