If you don’t mind having some risk in your life, stocks are always one of the best options for your money. By purchasing equity in a company, you can take advantage of its growth. When dividends come your way, that means your portfolio continues growing because you can keep reinvesting those earnings.
The S&P 500 index has offered a 9.6% growth average since 1928, although some years, the market went through major losses. In 2008, it experienced a 36.5% decline.
If stocks aren’t right for your portfolio, here are some of the other options for you to consider.
What Investments Make Sense for 2021 and Beyond?
1. Forex Market
This marketplace is where you can buy and sell foreign currencies. It offers access to the largest financial asset trading market on our planet, averaging over $5 trillion per day. You also get the advantage of having it be open 24-7 during the week.
2. Short Selling
You will use this investment strategy if you think a market index or a stock price will decrease. With the Dow Jones reaching above 30,000, there could be some potential to make some cash with this strategy. Some stocks trade at more than 90 times their current valuation, making them a promising option.
3. Penny Stocks
These low-priced stocks cost less than $5 per share. It’s a notable designation because some big names entered that realm after the COVID-19 emergency, including the Ford Motor Company. If you purchased F stock when it was at $3.96 per share, you’d have doubled your money by the end of 2020. Some investors have reported a 1000% percent profit on some trades.
4. Master Limited Partnerships
An MLP must get 90% of its income from real estate, commodities, or natural resources. The advantage of going in this direction is that you’ll get tax advantages and a reasonable cash flow. It’s also a way to capitalize on your intuition in these areas. Oil is a popular choice.
When you’re willing to take on high risks, the rewards your portfolio can achieve are significant. It can also be a recipe that leads to massive losses. Please remember to consult your financial advisor with any specific questions you may have about your money.