4 Key Tips for Making Secure Investments
Are you one of the lucky ones that have benefited from the COVID crisis? Perhaps your business was online, or perhaps you worked remotely and your workload has increased exponentially?
If so, then you’ll probably have money lying around in the bank and be wondering what are secure investments to make? It can be a difficult call to make, and with the markets and the economy being as volatile as they are, it could be the difference between losing it all and becoming a millionaire in a few short years.
But what should you look for when investing? Here’s everything you need to know.
1. Do Your Research
Make sure you have consulted multiple sources of information and know your market inside out before you invest.
We’ve all heard of people being ripped off by scams they heard about on the internet. The fact is that there is no easy way to make a quick buck unless you already have a lot of money lying around to invest. And no marketing-savvy salesman is going to tell you about it.
Instead, the way to make sound investments is to decide upon a nice one that interests you and research it thoroughly. Make time to check the impact investing trends and other investments that are in demand these days.
Look up businessmen and traders you admire who are successful, and find out where they invest their stock. This can be a great way of ensuring success. Read their books or listen to their podcasts.
Discuss Your Ideas With Like-Minded People
Sometimes you can come up with a great idea for how to invest but there are other factors that you have not considered.
Find friends that you trust who also have an interest in investing, and share your ideas with them. The beauty of investing is that no one can steal your investment plan.
If your friends want to invest too, they can and it won’t affect your position. Moreover, if enough people invest in the companies you are investing in at the same time, it will only increase the share price and your overall profit.
2. Invest in Companies With Expected Long Term Growth
Ask yourself which companies you expect to be big in five to ten years? Most of them are going to be big tech companies that are pushing the boundaries of existing technology and making it better.
Companies like Apple, Zoom, and Tesla are all great companies in which to invest. Companies that have physical stores or that operate on traditional business models are likely to fold within the next twenty or thirty years.
Think outside the box. Are there startups doing interesting things that you could capitalize on? It helps if you like what a company is doing and the products they are developing, as it makes you more invested in them.
3. Consider Property
Investing in big tech companies is a great idea, but the investors who do well are the ones that have diversified their portfolio. And one of the best ways of doing that is investing in the housing market.
Houses and property prices will never completely collapse. There will always be a demand for property, just as there will always be a demand for subsidiary industries like job safety solutions that are worth looking into.
At the moment, prices are continuously increasing. Many people indeed believe we are in a housing bubble and it may one day collapse. But it will never collapse to the point where you have lost everything, and it may soon bounce back.
Investing in property is still a much better option than leaving your money in a savings account where there is little interest. There are multiple ways to make a smart rental investment for some passive income as well as an investment to sell at a later date.
Property to look out for is in upcoming areas, not in the big cities like New York or Los Angeles. You might even consider investing in property in foreign countries where the entry for investment is cheaper.
4. Factor in Short Term Loses Due to Corona
The next thing to do is to factor in short term losses. The Corona crisis has left many companies on the verge of collapse.
The economy is contracting at the moment. Britain’s GDP fell by 20%, the biggest drop on record. But everything will soon bounce back.
When you invest, factor in the Corona problem, but remember that this crisis won’t last forever. Be sure to consider companies that not only have enough capital to weather the crisis but also have long-term potential.
You also need to consider how remote working is going to change the landscape. For example, many people live in New York or Los Angeles, where house prices are high, because it’s convenient for their work and networking.
As working online becomes the new normal, many people are considering moving out of the big cities, especially since these cities are the epicenter of Corona outbreaks. This will push down the price of property in these cities even if people do eventually end up coming back.
Secure Investments? Think About What the World Will Look Like In 10 Years
If you’re thinking about making secure investments, do your research. Make sure you know your market inside-out. Listen to the advice of well-known experts, and study market trends.
And then consider the bigger picture. Short-term stock sales rarely make you a huge sum of money unless you already have a large sum to invest. Instead, think about big tech and online companies. Be sure to factor in short-term losses due to the Corona crisis.
If you are interested in reading more about how to make secure investments, check out the rest of our site.