To help you along your way, we are going to discuss some of the best investments for 2019 and beyond.
Before we get started, let’s take a look at what makes a good investment.
What makes a good investment?
In its most basic form, the overarching aim of making an investment is to increase the value of your wealth. At an absolute minimum, this would need to grow at a faster rate than that of inflation.
With the interest rates offered by banks now at record lows, keeping your funds in a basic savings account is no longer viable. In fact, the real-world value of your money will decline.
For example, if you held $10,000 in a basic savings account that paid an annual interest rate of 1%, then your original $10,000 would be worth $10,100 at the end of the year.
However, what if inflation grew by 3% in the same period? Essentially, although your $10,000 would be worth 1% more, when you factor in the 3% inflation rate, you’re effectively 2% worse off!
As such, when asking yourself what is the best investment, it needs to be a financial instrument that not only protects your wealth, but helps it to grow.
On top of this, the best investments also ensure that risk levels are kept to an absolute minimum, with respect to the amount of growth that is expected.
In the financial world this is known the ‘Risk vs Reward’ model, and essentially means that the more risk an investor takes, the more profits they should be rewarded with. Otherwise, there would be no point in increasing the underlying risk.
As such, the best investments are those that cater directly to your appetite for risk. While some individuals view the best investments as those that offer super low-risk levels that yield low returns, others opt for high risk levels that will potentially yield really high returns.
So now that you know what makes a good investment, in the next part of our guide we are going to discuss 15 of the best investments for 2019 and beyond.
What are the best investments for 2019? Top 15 asset classes
In order to point you in the right direction, we are going to explore 15 of the best investments in terms of the underlying asset class. This will give you the opportunity to explore the financial product in more detail, and subsequently allow you to make an informed decision at to the best investments for your individual needs. Take note, these are in no particular order.
Top investment strategies
Getting your investment strategies right is fundamental if you are to make money in both the short and long-term. In order to point you in the right direction, we’ve listed 5 useful tips to get you thinking in the right mindset.
1. Do your own research on your chosen investment
Before you even think about parting with your own money, it is crucial that you perform significant amounts of independent research. This needs to cover the asset itself, the industry that it operates in, and the overall health of the markets.Ultimately, this is one of the most important investment strategies that you can take if you want to ensure that your wealth is protected in the long-run.
2. Learn how to read pricing charts
Successful traders have a full understand of pricing charts. These are charts that detail the historical pricing movements of a particular asset. It is absolutely fundamental that you take some time to read pricing charts, as it could be the difference between entering the market at the right time, or the wrong time. Most importantly, you want to ensure that you are not purchasing an asset when it is close to peaking.
3. Set targets
Although this is often overlooked, when selecting the best investments for your portfolio you need to set some underlying targets. This is to ensure that you do not miss your opportunity to exit the market. If you are keen to hold on to your best investments long-term, this is fine, but you should have a rough idea as to what you are looking to achieve. Markets can change very quickly in the investment space, so always have a plan.
Diversifying your best investments means that you avoid putting all of your eggs in to one basket. Not only does this mean multiple assets, but you ideally want to cover multiple industries across multiple markets. This way, should one of your investments perform poorly, your exposure won’t be felt nearly as much.
An example of a diversified investments basket would be to blend traditional stocks with precious metals, real estate and currencies,
5. Hold a mixture of risk-levels
If you do have an appetite for higher-risk assets in your list of best investments, then it crucial that you balance this out with lower-risk assets. Most successful traders will utilize a weighting system. For example, traders might opt for 70% in low-risk assets, 20% in medium-risk assets and 10% in high-risk assets.
This is a similar approach to diversifying your best investments, as the overarching aim is to mitigate your risk.
Best investment platforms
If you’ve chosen the best investments for your individual needs and you’re ready to start trading, then you’ll need to find a suitable investment platform. Here’s 4 that are worth considering.
If you’ve read our Best Investments guide from start to finish, then you should now have a full understanding of the different types of investment products to consider in 2019 and beyond.
Each of the 15 investments that we discussed offers their own underlying risk-levels. As such, it is potentially a good idea to invest in multiple asset classes, with the view of mitigating your risk.
Whether its real estate, cryptocurrencies, stocks, ETFs, futures or mutual funds, there’s an investment product out there for everyone.
What is the easiest way to start investing?
If you are at the very start of your investment journey, then it's probably best to use a CFD broker. You'll still have access to more than a thousand assets, and fees are much lower than traditional stock brokers. This means that you'll be able to start investing with smaller amounts.
What are the best investments of 2019?
If you're looking for the best investments in 2019, then your best bet is to diversify across a range of different assets. This will mitigate your risk and ensure that you are not too exposed to a single marketplace. Think about combining stocks with ETFs, index funds and commodities.
Which investments are low-risk?
While every asset class will always attract an element of risk, some are considered to be at the very bottom of the risk vs reward model. Such examples are bonds, real estate and debt mutual funds.
Should I invest in higher-risk assets?
There is nothing wrong with higher-risk assets, as long as you keep your investment to an absolute minimum. Moreover, you need to have a firm understanding of the underlying risks before you part with your money.Some investors will allocate a small amount of their portfolio to higher-risk assets, however just make sure you combine this with other assets that are less risky.
Am I Best suited for short or long term investments?
There is no one-size-fits-all with investment strategies. Short term investments will generally require more of your time, as you'll need to be fairly active to accumulate frequent profits. This also depends on the asset you intend on investing in. For example, if you'll looking to invest in bonds or real estate, these are generally best suited for long-term investing.
Is investing in CFDs safe?
As long as you are using a regulated broker that is fully authorized to sell CFDs, they are completely safe. As with all brokers, you should still conduct your own research to ensure that they are the right platform for you.