Investing has certainly become a hot button topic in the past few decades. With the advent of new assets such as cryptocurrency, it really does appear as though we have more options to pursue than ever before. This begs the question, though – what is going to be available in the coming year, and are there certain things that we can add to our portfolios that will be better than the others?
Today, that is what I am looking to unpack for you. While I understand that this can get kind of complicated, it is my hope to explain it in a clear and concise way here! So, if that sounds like information that you would like to be clued in on, make sure to keep reading!
Current Projections
I know, I know – 2023 has just begun! How can we really say that we know what to expect? Admittedly, it is impossible to know the exact details. With that being said, though, there are plenty of predictions being made right now. Getting to know them certainly cannot hurt, especially if you are just getting started on this right now.
Put simply, it appears as though stocks are going to have another very tough year. Current predictions are showing that most of the stock market is going to take a hit. Certain companies may perform just fine, but it will be up to you whether that is a risk that you want to take.
The landscape for bonds appears similarly dreary, although it is a bit harder to generalize here considering the fact that in the coming decade you may be able to cash them out with great gains. In terms of the big takeaway, I would say that it is probably not going to be the best year to cash out on them if you have been waiting for a while. Hold onto them for just a bit longer.
What about other markets and industries, though? Naturally, this is where things start to get a bit more interesting. Let us start off with commodities, which are raw materials that will be refined later down the road during the manufacturing process.
Groups such as Investor’s Circle go into depth about some of them, in particular precious metals. I will certainly go into more detail about those later as well, but for now, we will speak about them in a more general sense. Commodities, similar to the other types of assets that you might add to your investment portfolio, are sort of all across the board in terms of effectiveness in the coming year.
Inherently, they have a ton of sectors within. It is kind of hard to predict how the agricultural industry will go this year, seeing as we are not really certain what weather patterns that we will end up seeing. So – it may be wise to hold off on that, both for crops and for livestock. What about the other markets?
Energy is honestly rather steady in terms of profit and the fact that we will always need it (at least in some capacity). Both the fossil fuel industry and the eco-friendly sources of energy are going to be some relatively safe places to put some of your money. The latter might be slightly better, as you can see here, https://www.un.org/en/climatechange/what-is-renewable-energy,
considering the goals of the United Nations to shift us towards that.
Getting Specific: Precious Metals
The final type of commodity that we will discuss today are precious metals. Most of us have heard of silver and gold, but an additional two are platinum and palladium. Each has its own unique properties even though they all fall into the same general category. Why do they deserve their own section, you may be wondering?
It is pretty simple, really. They are an exceedingly valuable resource and are used in many other industries including minting of coins and creating jewelry. On top of that, they can be utilized as a way to store your wealth without having to worry about inflation impacting the value of paper currency. Really, there is very little risk associated with investing in them.
A question that many investors have with it though is in regard to storage. While I understand this for sure, there is not all that much to worry about. None of the precious metals have a melting point anywhere near to what room temperature would be. In addition to that, because of their very nature, they are difficult to tarnish or dent. So long as you create adequate space or find a proper storage facility, it should be fine.
Should Investors be Worried Going into the New Year?
This question is a tricky one, since the answer is sort of…well, it is both “yes” and “no.” Perhaps it would be best to go with an “it depends on what industry you are planning to get involved in and what assets that you are selecting.” Of course, this does not exactly roll off the tongue. Alas that it is the most realistic response.
To parrot most financial experts right now, it is probably a good idea to exercise caution in terms of what we put our hard-earned dollars into. 2023 is not the year to pursue risky investments such as cryptocurrency or non-fungible tokens. They are not proven in the long-term, and honestly, that is what most of us are worried about right now.
So, consider looking into the other things that I have mentioned in this article today. If none of them stood out to you in particular, that is okay. There are further options and opportunities as well! Try searching for them on whatever search engine that you prefer or checking some of the resources that I have offered.
As long as you keep your portfolio diverse and do not put all your wealth into one single asset, you should be fine. While there is nothing wrong with sticking to what you know, branching out is a good idea as well!