5 Different Investment Strategies and Their Benefits

Investment strategies range across a wide gulf. Depending on your approach to the world of investing, as well as your preferred asset classes, some strategies may work better than others for your particular needs. However, each approach to wealth creation holds sway over a unique set of advantages. Finding the right balance within your portfolio and taking chances on great investment opportunities will never go out of style, no matter how you choose to invest.

1. Start with firm research habits.

Learning to invest with research and market fundamentals is the best practice for beginners to investing. No matter what commodities will eventually form the core of your portfolio of assets, learning to trade on fundamentals and indicators is critical to finding continued success in each of your trades.

The truth is that investors lose on trades every day. This is simply part of the lifestyle of an investor. Those with strong fundamentals understand that they’re going to see down days and work to minimize the number of these while looking forward to the next opportunity to invest. Never breaking from your strategy can be a hard path to follow, especially during periods of loss. But the most seasoned investors around will all tell you that losses are temporary.

The same goes for the market when stocks are beaten down. Over the course of 2020, stocks have seen a number of widening corrective periods that have rattled investors to their core. The pros will tell you to buy during these downturns, even if the market looks as if it might never recover. This wisdom would have netted you massive returns each time as the market swung higher as an elastic band stretched to its limit.

Some of the most famous investors of all time spend the majority of their days reading and learning in order to leverage their knowledge into new and powerful commodity purchases. Incorporating research habits like this in your trading strategy is a surefire way to continue learning and growing as an investor with a keen eye for forming market trends.

2. Grow with the stock market.

The stock market is often the first place that investors land when they move on from simple bank offered savings accounts. The stock market is a great place to put your skills to the test. Commodities traded here range across all sectors of industry, and the interactions among pricing models mean that patterns can easily be discerned by those who have taken the time to learn about the market’s twists and turns. Investments in the stock market are relatively safe and offer a highly competitive return for those who are able to pick stocks with gusto.

The market also offers invaluable security in the form of index funds. These are market trackers that are managed by investment banks. Algorithms and professional stock pickers rebalance the portfolio at regular intervals to provide shareholders with a cross-section of the market’s stocks while insulating the fund from unexpected shocks. The S&P 500 has grown at an annualized rate of about 10% since its inception with downturns corresponding with the wider marketplace at key intervals.

Of course, there are other funds out there worth an investment. Yieldstreet’s Prism fund, for instance, combines a unique blend of real estate assets with other alternative commodities in order to provide an aggressive return on investment to its shareholders (read a Yieldstreet review for more on their prospectus). While depressed years are to be expected, index funds lock in the growth factor of the market as a whole in order to provide investors with fantastic security and a respectable growth rate over the long term.

3. Invest in yourself.

Making an investment in yourself is also a great idea for those looking to expand their presence in any setting. A wardrobe upgrade that includes minimizer bras, tasteful jackets, and stylish shoes is a great place to invest in yourself and your future. Making sure that you always look your best is a great way to always make a good first impression.

The power of a great first impression can’t be overstated. People generally form these rock-solid opinions in a matter of mere seconds, and it can be incredibly difficult to overwrite a poor first impression. When going into business meetings, interviews, or even on a night out with friends, it’s always important to look and feel your best.

Also, the clothing industry itself is a fantastic place to invest in as a business opportunity. Buying into a brand or clothing line alongside an influencer that you follow, or growing your own sales, is a great business venture for those looking for a more tactile opportunity. Believing in yourself and your capacity to create the wealth that you seek can come through any medium that gets you excited. Clothing is a massive industry, selling $368 billion in the U.S. market alone in 2019. Sales in this realm of business require extensive market research, but with a background in fashion and the savvy to create new streams of sales, this could be the perfect place for your capital to take off.

4. Take a chance on real estate.

Real estate investments provide homeowners with a fantastic stream of income that can quickly build wealth. When looking to convert your home into a rental, it’s always a good idea, to begin with, some quality of life upgrades that are affordable yet provide a new sense of luxury to space. Hardwood or laminate flooring is a high-quality upgrade that can be installed in rapid time, and each makes for an increase in tenant interest in the property.

Real estate has provided high net worth individuals with a vehicle for fantastic returns for generations, and the opportunities in the asset class are becoming more commonplace among average retail investors as well. Whether you’re considering flipping houses or buying property to leverage for rental income, real estate provides a long-term wealth builder, unlike any other asset.

5. Branch out with precious metals.

Precious metals are a massive long-term commodity for securing your wealth. Gold and silver bullion are a favorite among investors looking for long term stability that holds a low correlation with other asset types. Bullion grows in value at a slow, yet consistent, pace, and it can be leveraged as collateral for making other purchases or securing loans funding.

Coins and bullion bars make for a beautiful addition to an investment portfolio as well, and many investors initially make the leap into this asset class for the look alone, only to discover the stability that metals provide. Like bonds and CD offerings, gold and silver act as a powerful hedge against a down market and can provide you with a perennial winner.

No matter the assets you choose to invest in, there’s something out there that will provide you with the stability and return rate that you’re looking for. Do your research, and craft a strategy that works for your unique needs.

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