Think About These 7 Stable Investments to Fortify Your Portfolio
Investing got a tough ride in the first half of 2022. When your investment has taken a hit, it’s tempting to search for safer options that aren’t so up and down. In this article, I’ll go over a few investment options that might add some stability, and decrease the potential for massive ups and downs.
Remember, I’m not a financial advisor, so remember to get advice from a professional for your specific needs.
1. **Dividend Stocks**: These are stocks from companies who share their profits with their investors. They often provide a steady income and can help stabilize your portfolio. Think established, healthy companies that can weather tougher times.
2. **Farmland**: Diversifying into farmland can help reduce vulnerability from economic swings. Food is always in demand but farmland isn’t always available, leading to potentially steady appreciation over time. Platforms like AcreTrader and FarmTogether let you buy into a farm and earn from its income.
3. **Fine Wine**: Seems unusual right? However, fine wine doesn’t lose its charm during economic dips, maintaining its value. It can be a complex business, but platforms like Vinovest and Vint can handle the nuances for you.
4. **Low Volatility ETFs and Mutual Funds**: These are groups of assets designed to reduce volatility. ETFs like iShares MSCI Minimum Volatility Factor and Invesco S&P 500 Low Volatility, or mutual funds like Vanguard’s LifeStrategy Income Fund, can all minimize contrast.
5. **Fundrise**: A real estate crowdfunding platform, Fundrise lets you invest in diversified commercial real estate with just $10. Values can drop, but it has a history of consistent positive returns.
6. **Bonds**: Bonds are basically loans you give to governments or corporations. Bonds often move in the opposite direction of stocks, giving another option for diversification.
7. **CDs**: Short for certificate of deposit, it’s a saving account with fixed interest over a fixed term. Simple and low risk, they could be a good way to reduce portfolio volatility.
So, volatility simply refers to how much an investment’s value changes – the greater the fluctuations, the higher the volatility. Varying your portfolio is a common way to protect against volatility, but there’s no surefire method. While some volatility can lead to potential high returns, stability can also be attractive if the risks feel too daunting.
Before investing, always research each potential asset and consider getting guidance from a professional. Diversification can reduce some risk of volatility and might maintain your sanity during financial storms.
Lastly, certain platforms like Public, Moomoo, and Webull offer services such as commission-free trades, selling of cryptocurrencies, and access to alternative investments depending on your preferences.
Happy investing!
Tags: finance, investing, money, personal finance.
