Best Ways to Invest in 2014

Jul 10

There are plenty of reasons to invest this year. For a start, the economic and fiscal conditions look to be ripening. There are few fears of a ‘fiscal cliff’ in the United States in 2014 while the financial difficulties of the past few years in parts of Europe and in Japan appear to be receding. In addition, there is added impetus to invest. Today’s generation are unlikely to benefit from the same generous pensions that their parents will enjoy. So, if you are looking to invest, consider some of the following options.

  • Undervalued, global brands

The world is of course becoming a much bigger market than it has ever been. As a result, a good way to protect yourself from the financial pitfalls of a single economy or currency is to invest in companies which have a significant presence across the globe. If you can reduce the local exposure of your investments then they are likely to remain more stable. Of course, there are plenty of global brand stocks to choose from. However, two ideas are Adidas and tobacco giant Philip Morris International, which is tipped by some pundits for good things this year.

  • Emerging markets

This might initially appear to contradict the previous point. Experts have been promoting the virtues of investing in the likes of India, Brazil and Korea, so-called emerging markets for some time now. These are growing economies and the International Monetary Fund estimates that they will grow at two or three times the rate of the United States. The results in emerging markets haven’t been as positive as some expected over recent years, but some commentators believe that now is the right time to invest. Stocks in these markets appear to be generously valued although it is wise not to invest in a single currency fund. At any rate, emerging markets provide some important diversity to more standard investments.

  • Binary options

Often considered to be an ‘exotic’ investment, binary options are not only popular but actually a pretty safe way to invest. In truth when you use binary options, you never actually purchase a stock, commodity or currency. Instead, you invest in the option of whether such an investment will increase or decrease in value over a chosen period of time. Because the extent of the fluctuation doesn’t matter, only the direction of market movement, the risks are simple to calculate. There are also plenty of online platforms which make the whole experience easy to manage.

  • Tracker options

While we’re on the subject of easy-to-handle investments, if selecting specific stocks is a bit too much hard work, then it is certainly worth considering a tracker option. It does not require knowledge of specific companies or intensive management. Instead, if you invest in say a FTSE 100 tracker fund, then your investment will be spread over all 100 companies. As a result, if the FTSE 100 increases in value, so does your investment. The only thing to look out for is to make sure that your tracker fund doesn’t levy a significant additional management charge.

  • Specific stocks

Investing in specific stocks can offer many benefits. One of the main advantages is the potential for higher returns compared to other investment options. By selecting stocks with strong financial performance and growth potential, investors can achieve significant capital gains over time. The interesting part is that they can choose to invest in any company they may have an interest in. For example, someone with an interest in technology can check out the market growth of a firm like HAL (Halo Technologies Holdings Ltd) and the hal price to evaluate if it is a suitable investment for their portfolio. The same goes for any other sector, such as healthcare, energy, or finance. One needs to have a keen eye and be aware of the current trends in order to make an informed decision.

Needless to say, investing is a crucial aspect of building wealth and securing financial stability for the future. It is important to take the time to research and understand the different investment options available and to diversify your portfolio to minimize risk. While investing can be intimidating, especially for beginners, there are many resources available to help guide you through the process. By starting small and gradually increasing your investments, you can begin to see the benefits of compounding returns over time. Remember, investing is a long-term strategy, and patience and discipline are key to success.