Are you interested in investing but don’t know exactly where to start? Or are you someone who already does some purchases or exchanges and wants a good, solid investment guide to help you make better decisions?
Understanding common strategies is important, and part of this is based on knowing some of the differences in asset classes. The term “asset class” simply refers to a group of similar types of investment. Some people prefer to stick with one asset class, while others are much more versatile. To begin with, it might be a good idea to stick to a few similar investment types within the same asset class, and then consider expanding your portfolio as you gain more experience and knowledge.
Types of investment to look for
Here’s a quick rundown of the different classes:
• Fixed income or debt: the investor lends money to an institution (generally banks) or the government and gets interest in return. These types of investment include CoD and bonds.
• Stocks: Buy shares in something (stocks).
• Real estate: buying, owning, and ultimately selling physical property when the time is right. Obviously, you are not obligated to live or even visit the properties in which you invest.
• Cash and cash equivalents: the investor deposits the money in a savings account that pays interest or in commercial currencies.
• Commodities – Similar to real estate in that you would own physical things, except that it is a “common” product, item, or resource that many people need, such as precious metals, fossil fuels, food, and so on. You do not need to have them physically in your possession.
• Derivatives as futures: this means that you are the owner of the trades (options and futures), and their value depends on the underlying asset. This asset class can be complicated, so if you are interested, you will need a detailed guide to investing in them.
Guide to investing in stocks
If you are interested in stocks, you should join a good newsletter and resource program that offers all the tools and guides you need to invest in the best stocks. There are many so-called “experts” who claim to offer “superior stock picks,” but not all of them can be right. Legitimate and REALLY GOOD experts don’t give their picks for nothing. That is why the best newsletters usually require a subscription.
The best guide to investing, especially with a long-term perspective, is Motley Fool. It is a HIGHLY RECOMMENDED platform that includes newsletter subscriptions, resources, wealth management tools, etc. They are particularly known for their top-notch stock picks.