Are you interested in investing but not sure where to start? Or are you someone who is already doing a bit of buying or trading and wants a good, solid guide to investing that will help you make better decisions.
Understanding common strategies is important, and part of this relies on knowing some of the differences between asset classes. The term “asset class” simply refers to a group of similar types of investment. Some people prefer to stick to a single asset class while others are much more versatile. For starters, it may be a good idea to stick with a few similar types of investing within the same asset class, and then consider expanding your portfolio as you gain experience and knowledge.
Types of investments to look for
Here is a brief overview of the different classes:
• Fixed income or debt: the investor lends money to an institution (usually banks) or a government and receives interest in return. These types of investments include CoDs and bonds.
• Stocks: actually buying stocks in something (stocks).
• Real estate: buy, own and ultimately sell physical property at the right time. You obviously don’t have to live or even visit the properties you invest in.
• Cash and cash equivalents: the investor places the money in an interest-bearing savings account or trades currencies.
• Goods: Similar to real estate in that you own physical goods, except that it is a “common” product, item, or resource that many people need, such as precious metals, fossil fuels, food, etc. have them physically in your possession.
• Derivatives such as futures: this means that you themselves own transactions (options and futures), and their value depends on the underlying asset. This asset class can be complicated, so if you’re interested you’ll need a step-by-step guide to investing in it.
Guide to investing in stocks
If you are interested in stocks, you should sign up for a good newsletter and resource program that offers all the tools and guides you need to invest in the best stocks. There are a lot of so-called “experts” who claim to offer the “best stock picks”, but not all of them can be right. Really good and legitimate experts don’t give up their choice for nothing. That’s why the best newsletters usually require a subscription.
The best investment guide – especially with a long-term perspective – is Motley Fool. It is a highly recommended platform that includes newsletter subscriptions, resources, wealth management tools, and more. They are particularly known for their choice of top notch titles.