Idle capital is a sitting duck in the current financial environment. Investing is the only way to stay ahead, and keep your head above water. The big question most seem to have is where is it safe to leave their money, and what should they be investing in to stay ahead of inflation, and safe from so many crises.
Restructure To Avoid Obvious Losses
It can seem scary out there. At least if you listen to the manipulated media, don’t know your history of the economy, Fed monetary policy, and industry cycles, or don’t control the value and performance of your own investments.
It is foolish to blindly dismiss obvious risks and pending losses. Though providing you have a healthy respect for them, and invest intelligently, this is the phase when the most wealth is made.
If a hurricane is barreling towards your home, you don’t just go outside and watch it tear its way down your driveway right at you. Yet, if you built a strong home, in a smart location, and put up your shutters, you can drive off on vacation a few miles away. You can be safe from the storm, along with your valuables, and family, and actually enjoy the time of your life dining out.
With your money, you can take it out of asset classes that are obviously, or almost surely going to crash or be at extreme risk of going bankrupt. Put that money somewhere with a better outlook.
Here are some more ways that you can invest confidently.
Diversification is always smart. It helps insulate against the extreme unexpected. Just make sure you diversify wisely, deeply, and broadly. Reduce your exposure to risk in any one bucket of your asset allocation.
If you really have no idea what’s going on out there, then do not have more than 25% to 30% of your net worth in any single asset class. Not stocks, not bonds, or crypto.
Invest With The Right People
Invest with those with the right experience and track record. Not just those that lived through previous crises and cycles, but who managed not to lose investor money during those times. This alone will make your decisions far simpler. There aren’t many to choose from.
It’s really all about great management. In easy bull runs almost anyone can make money, even if they make every mistake in the book. In more challenging times only a few will survive and thrive.
Invest With Downside Protection
Most types of investments have no floor. You can lose everything. That can even be true of investing in a bank.
You want tangible, hard assets, and something that will always retain some value, no matter what.
Invest In Controllable Assets
There is really nothing you can do to influence the price of most stocks or bonds. Not unless you are in political control, or have billions to manipulate the market.
Yet, there are assets like real estate, which can benefit from value creation and can generate income regardless of macroeconomics.