Have you been reluctant so far to invest in an economic environment that includes global inflation, supply chain crises, political unrest, war, health pandemics, and widespread unemployment? Millions of everyday investors have wondered whether it makes sense to seek profits in such a chaotic scenario. Luckily, there are several excellent ways to take advantage of financial opportunities, even in turbulent times like these.
Blue chip corporate stocks represent one of the more attractive ways to seek profits in bad times. Foreign exchange trading is another area where non-professionals can easily set up accounts and begin playing the international currency markets. Other opportunities include leveraging the power of diversification, hedging, real estate, and energy assets. Even in the most challenging economic eras, people can and do earn significant profits. It’s human nature to fear volatility and uncertainty, but several areas stand out as attractive investment opportunities. Here are details about the most lucrative of the lot.
Blue Chips and Aristocrats
Blue chip corporate stocks and shares that pay regular dividends are two of the best long-term investments for those who want to navigate global crises. Blue chip stocks are those issued by corporations that have been around a long time and have weathered many economic scenarios. They represent the top companies in the world and are often among the best-known names in business. Aristocrats are stocks that have paid dividends for at least 25 years in a row and increase the payment amount each successive year. Some investors choose them because they tend to be the healthiest companies with the best potential for continued growth.
Unique Opportunities in Forex
Getting into foreign exchange or trading foreign currencies is called forex for short. It’s an ideal way to take part in regular trading and investing because currency pairs always include one profitable side. The thing to remember in turbulent markets is to set stops on every order you place and use careful position sizing. That way, it’s easier to protect your capital and take profits when they appear. When you research a topic like the 2022 forex markets: dynamics and opportunities are unique for a number of reasons. First, the COVID pandemic has riled international economies like never before, and current political crises have greatly destabilized several major economies.
How do those dynamics play into your hands as a forex investor? They give you the chance to more accurately predict the currencies that will suffer poor performance and the ones that could have significant upside. Making a profit in forex is about making educated guesses about the performance of one nation’s currency against another’s. Especially in volatile times, there are many clear opportunities for diligent traders who study the international news and follow economic and political trends.
Diversification
One of the cornerstones of cautionary investing is diversification. The old saying about not putting all your eggs in one basket describes the philosophy accurately. What is diversification for everyday investors? In most cases, you can achieve it by maintaining a portfolio that holds a mix of stocks, bonds, foreign currency, precious metals, cryptocurrency, index funds, and other asset classes.
Hedging with Crypto and Gold
In challenging and uncertain historical periods, it’s wise to hedge large portfolios with a small percentage of volatile assets that have the potential for high returns. That’s why so many cautious investors turn to gold and cryptocurrency, both of which tend to perform well when the traditional securities markets suffer. Both are also components of a balanced, diversified portfolio. However, remember to keep percentages of these assets low as a total share of your holdings.
Real Estate
For more than a century, working people have looked to real estate as a safer, more profitable play than the stock market. That has not always been the case, but the idea behind it is the fact that real estate is a real asset, not a paper one. Even when you buy REITs (real estate investment trusts), they’re backed by ownership of land and real property. When inflation strikes and general economic conditions worsen, the value of real estate often soars.
Petroleum and Natural Gas
In an era when energy is at an all-time premium, it’s helpful to include at least a few energy stocks in a long-term portfolio. Even amid the current unrest in Ukraine, the COVID pandemic, and supply chain problems, petroleum and natural gas stocks have performed admirably. Because oil is the backbone of modern production and transportation, it will be decades before the luster of energy assets dims.
