Trading stocks worldwide are now more accessible thanks to the internet. However, investing in specific countries is also an option. Picking a stable country and choosing to invest there, for example, purchasing UK stocks, allows you to create a more diversified stock portfolio.
Having said that, it’s important to note that investing solely in one area is the same as putting all your eggs in one basket. Take the time to research locations and local markets before purchasing stocks in a specific county. With the proper research, you’ll find more stable opportunities in that area, even during harsher economic times.
Investing is a fun and opportunistic task that always presents various challenges. While common investment routes involve stocks and hedge funds, among others, there are many lesser-known options. These choices vary in profitability and risk but present more opportunities for both newcomers and veteran investors.
Why Diversify Your Portfolio
Stocks and real estate are popular options, but both the stock and real estate markets have crashed in the past. Diversifying your portfolio means that when one market doesn’t do so well, you can still make some gains in other markets to make up for your loss. The variety allows your assets to always be available when needed.
Having a variety of investment options can also be more profitable, as each market has its highs and lows for both buying and selling. Focusing on several of them with active attention may lead to a profitable outcome.
Gold and Precious Metals
Gold and silver are popular metals for investing in, and they are well-trusted. Gold, especially, is often regarded as a tangible inflation hedge, readily liquid, and ideal for long-term storage. Usually, this results in the metal being traded on equal terms with stocks.
Gold is also known as a rescue asset, being more stable during uncertain times when other investments, such as stocks, may have lower yields. There are various ways to buy and invest in gold, from buying and holding it yourself to using gold exchange-traded funds or investing in the gold mining industry.
Fine Art
Fine art is a more uncommon but not unheard of route to investing, as many art pieces accrue in value over time. Historically, blue chip art has seen a rate of 180% or greater returns when compared to the S&P 500 from 2000 – 2018, for example. Additionally, with the rise of modern technology, buying fractional percentages of paintings as an investment is possible, offering a return when the painting is sold.
However, it’s important to note that the art market can change rapidly, and investments may not always be recouped. The history of the sale of paintings doesn’t always indicate profit unless the artist is famous. One such example of a famous artist is Andy Warhol, whose works still sell for millions.
Other Collectables
Collectibles can be seen as another form of investment, though the results vary widely by item. Comic books and toys are popular collectors items, as are vintage cars. Depending on the piece, comics have sold for millions at auctions in the past, with notable mentions including the first appearance of Superman.
Toys span a much wider area than comics but offer considerable returns on sought-after items. Rare beanie babies sell for thousands online, while limited edition dolls can reach just as high a price. The best strategy with this investment is to purchase popular and restricted items at a low price and attempt to resell them once availability becomes low.
Conclusion
Many ways of investing may seem obscure but could present good opportunities. Specific options, such as collectibles and fine art, have varying values on the market. One thing to note is that unless you’re saving money in a bank account, almost every investment carries some level of risk with it.
