2020 and 2021 saw a major downturn in the global economy. All stock markets suffered, the Russian Central Bank repeatedly cut its key rate, the real estate situation was unpredictable, and the cryptocurrency began to grow unexpectedly. The difficult 2021 is a thing of the past, but the situation has not changed dramatically. So what is the best way to invest in 2022 for maximum profit? I've studied a variety of materials, expert analyses and statistics to prepare this article for you. It contains the best expert advice to help you figure it out.
If you have $ 1 500
Phys. a person who wants to invest one thousand five hundred dollars can be advised on different options. You won't be able to earn a lot with bank deposits, since their profitability ranges from 4 to 10% with inflation above 5% . To make good money, you need to use more complex tools: trading on exchange rates or stocks.
You should study the market and start monitoring the exchange. You need to track them day and night, developing a clear strategy and sticking to it, regardless of the circumstances. It is important to learn to control your emotions.
Even if you are a master of the board game Monopoly, with real money your nerves can fail. With a decrease, the beginner will start to panicly fold stocks, and the pros will withstand losses. On the rise, a beginner often makes the mistake of taking money ahead of time, while a pro knows how to wait. Professionals are trained and know how to endure psychological pressure.
After studying the market and psychology, try to enter the stock exchange or buy currency. Your goal is to buy cheaper and sell more expensive. Securities sometimes generate huge returns. For example, since its IPO in 1980, Apple's stock has risen 50,000%.
"There is one complication with investments: you do not have the opportunity to influence the market by concluding better deals. If at work you can talk with your boss and knock out a more substantial salary, and negotiate an increased fee with the client, then with currency and stocks you do not influence the market in any way, but adjust to it."
If you have $15 000
A fifteen thousand dollars is a good investment. The main thing is not to make hasty decisions and draw up a financial plan. It is important to define goals, resources and calculate how much money will be required. Funds can be invested in securities (bonds, stocks or ETFs).
If your goal is to accumulate retirement capital in 20-25 years , you can invest in securities such as bonds, stocks or ETFs. If you invest the amount for at least 3 years, bonds can also be used (especially with an individual investment account).
In the case of short-term goals, deposits are the best option, since with minimal risk they have a guaranteed return. But buying real estate for subsequent renting in this case will not be the best idea.
"The return on the delivery of residential real estate reaches an average of 5-6% per annum. Taking into account taxes, downtime, repair and insurance costs, as well as a host of other nuances that come up in the rental process, a bank deposit may even be more profitable."*
If you are ready to borrow $ 50 000
If you decide to spend fifty thousand dollar on investments, you need to be careful. Investing borrowed funds in anything is too risky, since you need to pay interest on the loan, and the profit must cover them. There is also one caveat. The key rate may decrease in 2-3 years, but for you it will remain the same under the terms of the concluded agreement.
There is one more thing. Every successful investor will confirm that investing borrowed assets is risky , since you become a debtor and automatically receive a minimum income target that you must adhere to. Please note that when investing credit funds, you, along with all the typical difficulties, get two annoying factors:
- Emotional, as you will constantly think that you are in debt.
- The minimum income that you need to get to get a profit.
"If you invest your own money and earn 10% from it , you will definitely be delighted. And if you have fifty thousand dollars taken at 15% per annum, then an income of 10% will lead to a total loss of 5% . For an investment to pay off, you need a return of over 15%. All this is completely logical and even banal, but some beginners make the mistake of getting large loans from the bank and trying to get higher interest rates with their help."
What to do when the dollars rise?
Money should generate income - every investor will tell you about this. Entrepreneurial people are always looking for where to invest their savings in order to get interest. There are dozens and even hundreds of directions, starting with banal bank deposits and ending with risky investments in unknown startups.
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