Economic Outlook: 5 Investment Options to Consider in 2023
Most of us wish our money would go further. After all, it can sometimes seem like it leaves your bank account as quickly as it arrives. But what if your money could make you more money all by itself? It’s entirely possible when you invest it. Of course, if you’ve never explored your investment options, you’ll have no idea how to begin. Thankfully, you can set yourself up for a more lucrative 2023 by considering some of the following investment avenues.
Investing several hundred thousand dollars can seem daunting, but if you’ve seen any commercial property for sale in Melbourne and other cities experiencing incredible growth, you probably understand that it’s worthwhile.
Known for standing the test of time, real estate is one of the most robust investment options. You can enjoy passive income, tax advantages, portfolio diversification, and a stable cash flow. Rental income also increases with time, which sometimes means there’s room for increased revenue in the future.
Should you decide to sell your property, there’s a strong chance you’ll be able to sell it for more than you paid, allowing you to profit even more than you already did during ownership.
Cryptocurrencies are virtual currencies that leverage blockchain technology. They have become one of the most popular (if controversial) investment options in recent years. By 2021, more than 59 million Americans owned some form of cryptocurrency.
While it’s known to experience extreme volatility, cryptocurrency might be viable if you’ve got some money to play with that you don’t mind losing if things go south. There are more than 12,000 cryptocurrencies to choose from, including Bitcoin, Ethereum, Binance Coin, and Tether.
High-Yield Savings Account
If you’re new to investing and scared of putting your hard-earned money into something risky, consider starting your journey with a high-yield savings account.
High-yield savings accounts are among the safest investment options and function similarly to traditional ones. However, they’re known to pay up to 25 times more than conventional accounts, accelerating your journey.
While there’s an element of risk with all investments, these accounts are traditionally safe. The Federal Deposit Insurance Corporation insures them, and you can usually access your account and withdraw funds with ease. Just be aware that different banks have different terms governing your access to the funds. Many people explore this investment option to meet short-term savings goals.
Having minimal savings shouldn’t be a barrier to making money. If you’re ready to invest but don’t have a significant amount of capital, explore exchange-traded funds (ETF). ETFs involve pooling the money from several investors to purchase a collection of securities which are then bought and sold as individual stocks.
Many new investors prefer ETFs for their immediate diversification, which means that if one stock is performing poorly, the loss can be offset by the success of another.
If you’re a long way from retirement and want to enjoy steady cash flow, consider investing in value stocks. Value stocks are often described as “stock market bargains,” and their low prices reflect the companies’ current financial performance.
Pay attention to a company’s track record regarding profitability and rising sales. If the share price is low compared to these records, you might have identified a value stock. Investors love their limited volatility and ability to perform well when interest rates and inflation are rising.
Knowing how to invest your money is never easy, especially when you’ve never explored this option before. However, the investment options above are shaping up to be winners in 2023, so now might be the right time to find out more.