Facing uncertain times, where are smart investors heading?
It’s never too early to get ahead of the game. Although not as strong as 2018, this year has been, by most metrics, an absolutely stellar one for investors, with stocks, bonds, real estate, and most other major investment vehicles appreciating sharply amid buoyant markets.
However, there is a storm on the horizon. As you’re probably already aware, the US and UK bond yield curve experienced an inversion back in August, a development that has preceded every recession in modern history.
That doesn’t mean it’s time to hide your money under your mattress. Smart investors know that turbulent times can be the best times to invest, as you’ll likely get a bargain which will curve sharply once the economic outlook improves. With that in mind, here is where investors should be parking their cash in 2020.
Real Estate is Still Safe
Few people would consider investing in real estate when warnings of a recession are in the air, but things are looking different this time. For one, real estate is always a top choice for investors looking for a bargain in the midst of a recession, as one of the first things to usually happen is a nosedive in house prices. One thing that is certain is that urban housing stock, particularly in a densely-populated, globalized economy like the UK, will appreciate sharply over the long-term. Look to areas such as London, the East Midlands, and the North West if you’re thinking about investing in property in the coming year.
A Crypto Comeback May be Coming
Cryptocurrencies of all stripes, with bitcoin at the head of the pack, have had a topsy-turvy few years. After the bitcoin bubble burst in the tail-end of 2017, many investors backed away. However, after a 33 percent appreciation of the price of bitcoin in 2019 alone, they’re flocking back. Part of this has been facilitated by the greatly increased ease of actually trading cryptocurrencies, thanks to popular platforms like Bitcoin Compass which allow people to trade for free, only needing to make a deposit of €200 worth of crypto to get going. Bitcoin’s star is on the rise again and may turn out to be a safer port in the coming storm.
Look to China for Bargains
With the US-China trade war in full swing and hundreds of billions of pounds worth of tariffs being imposed on both sides of the Pacific, few people are banking on China right now. However, this just means that you’ll be able to get more bang for your buck. GDP growth in China is still projected to be a healthy 6.2 percent for 2019, whilst seasoned investors are rosier than the press about the country’s long-term growth prospects. In fact, if you follow Bloomberg’s Investment Tips for the future, you’ll see that they’re currently touting China as the top spot to invest in 2020.
When economic trouble lies ahead, the worst thing you can do is shy away. Charge into the eye of the storm and follow what the smartest investors around are doing.