What to invest in 2020?

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What to invest in 2020?

2020-05-25 By: ChristopherRay

The key to investing in 2020  is to diversify to reduce risks and tactically allocate our resources. In the next note we will review the general considerations when making the investment decision, and of course, we will review the macroeconomic conditions of the international context to define a general action plan that will lead us to obtain the maximum expected returns. Let’s start with the general aspects when investing.

What to invest in 2020? General features

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The basics of the investment decision in 2020: Before starting to describe in detail the investment strategy, it is necessary to review some essential issues, among them we find:

Investment Risk

If you were looking for a positive answer, we must tell you that this is not how the business world works. every business, every investment, has a probability of risks, whether low or high, but, you must bear in mind that nothing that is good in life is easy. If you have this in mind when investing and you are a person who is not afraid to take risks, keep reading this article, since in the following paragraphs we will propose a list with a series of possible investments for the year 2020.

The old adage of the Delphi oracle echoes in the world of investing “Know thyself.” Do you feel comfortable / comfortable with low-risk instruments such as savings accounts or term deposits, or do you feel that you can withstand the vertigo of stock investments? There is no wrong answer, and many will even prefer to depart from the financial world, to invest directly in real assets (create an SMe, for example), or acquire a real estate such as an apartment and choose to earn rents through the permanent lease of the property.

If you want to know what your investor profile is, you can check the following link of the Commission for the Financial Market.

Budget constraint

In practice, there are almost no restrictions to enter the financial world. It is enough to have a bank current account and access to the bank’s website, and soon you will have offers to invest in stocks, mutual funds, term deposits, etc. However, it is always wise to consider what your investment objective is:

 

  • Increased wealth
  • Savings for housing
  • Savings for your vacation
  • Creation of a fund to study your children
  • Improvement in old-age / retirement pension

On the other hand, it is also necessary to contemplate the periodic fixed expenses in your home, plus a reserve for contingencies.

Another constraint that is important to consider is the time you will spend doing the work or research to make a financial decision. There are currently many passive management instruments available: from portfolios managed by fund managers, to the purchase of a mutual fund or eTF.

Investor Knowledge

educating is essential for an investor. And it is not so much about the credits / university courses you took, but rather about the knowledge that is acquired through experience and personal training. It is also important to gather all the necessary information about the investment vehicle, and the financial institution that offers it, after all, is putting the effort of a salary or personal wealth in the hands of a third party.

Routine tips to keep in mind when investing

now that you know the three basic concepts that every investor should know (Investment risk, budget constraint and investor knowledge) We want to give you other basic tips that could help you make the decision to invest.

Do not wait for the money to start to rain hours after making your investment, with this we want to remind you that good things make you wait, do not despair, you must be patient and know what you are investing in. Remember to do a probability study, that is, how much you expect to get in the short, medium and long range with your investment. Check your investments constantly, have you heard the saying that says “The master’s eye makes cattle fat”? Well in business it’s like this, don’t expect a third party to do all the work. Take risks, but always knowing what you’re getting into, be careful.

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