With rumours abounding and with new technology raging ahead, investing your money can be confusing and scary. Apart from paying off debt and investing in your health and your career, investment experts also have a few other suggestions how to best invest your cash in 2019.
Stock Market
Financial planner Jeff Rose advises in an article written for Forbes that while rumours abound that a “correction” is on its way for the stock market it remains one of the best places to invest if you are in it for the long haul. “If you don’t feel comfortable buying individual stocks, consider investing in globally diversified, low-cost index funds. If you need some help and guidance along the way, you can also use the services of a robo-advisor like Betterment,”
Rose adds. Investopedia advises stocks in companies looking into battery technology, Chinese internet giants, cloud-based and software and also in companies that can benefit from the decline of big tobacco. Investopedia do warn though that it appears that a bear market is due in the US and advises investors to buckle down and diversify.
Cutting out the stock brokers
In an article published on Balance, Joshua Kennon writes that direct investing offers some advantages and disadvantages. He adds that it is a personal choice to try investing on your own in the stock market or going through a broker.
If you wish to invest directly into the stock market, you might consider a platform like TD Direct Investing. Direct investing should allow for access to a wide variety of options and a clear and understandable fee structure. A direct investing platform can also allow for an investor to plan their strategy and set and personalise goals. Online platforms like this also offer support from experts, an opportunity to diversify investments for greater profits. It also offers on-going research results and education.
Real Estate
Rose adds that many believe that certain parts of the United States are also experiencing a “bubble” but adds that real estate remains an excellent investment or if you are not in the market for another house, he advises investing in Real Estate Investment Trusts and crowd-funding sites. He points out that these sites are a high risk investment as they cannot guarantee any returns or the safety of the original investment if the real estate market should collapse.
Socially Responsible Investing
Caleb Silver, writing for Investopedia, also highlights socially responsible investing as a major trend for 2019. “Natural disasters were exacerbated by climate change; privacy and influence scandals brought tech darlings back to earth (Facebook), and investors everywhere were reminded why strong corporate governance is important,” he wrote. Ivan Widjaya, writes that in this era of social responsible investment investors “could rule out companies that use fossil fuels, instead looking to back businesses that utilize alternative forms of energy.”
He adds that socially responsible investors do not only look for environmentally sustainable business practices. He adds that an unsatisfactory human rights record can also put off future investors including backing a political party deemed as unethical and companies manufacturing products like alcohol and tobacco.
Robo-Investors
In article published by Balance, Eric Rosenberg writes that robo-advisors will be big in 2019. “Here’s how they work,” he explains. “Robo-advisors are computer automated investment platforms. After signing up and filling out a short survey answering questions about your age, retirement goals and risk tolerance, the robo-advisor will put together an optimal portfolio for your goals and automatically manage it to stay on track over time. They typically cost less and offer more than a traditional investment advisor, but take out the one-on-one human element from the equation. This leads to more objective and lower cost investment services, a big win for retail investors of all backgrounds,” he wrote.
Investopedia adds their stamp of approval to Robo-Investors saying they are great for investors looking for low-cost, automated investment opportunities. “Within minutes, robo-advisors allow you to set up a customized, diverse portfolio. They can also give you access to wealth management services previously reserved for the ultra-wealthy like tax-loss harvesting and access to a certified financial planner,” the article continues.
Blockchain
Silver adds that blockchain technology might be a major investment trend for 2019. Blockchain first started as a technology to support Bitcoin but Silver said its expansion can be seen in other sectors as well.
An article published on Investing News advises that it is possible to invest in Block chain through stock, exchange-traded funds and crowd funding and states that the future value looks promising. “Uncoupled from bitcoin, blockchain’s future outlook is fascinating and promising. While estimates for market size vary wildly, the consensus seems to be that growth is inevitable once the needed technological infrastructure is in place,” the article reads.
Figures from experts place the blockchain market between US$7 billion and US$28 billion by 2021, meaning this is definitely an area to watch in 2019 and beyond.