Finance

Where to Invest Money in 2024

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Money market mutual funds and high-yield savings accounts remain two of the safest investments.

UBS analysts caution of slow economic growth and historically high interest rates making stocks risky investments. Their advice? Focus on quality stocks with attractive profit outlooks like AI leader Nvidia or Shopify that also ride secular trends such as gig economy, financial literacy or vehicle electrification.

Stocks

2024 could be an exciting year for stock investing, especially if the economy improves and interest rates remain low. Investors should carefully consider their risk tolerance before entering the stock market, and have some emergency savings stashed away should a financial crisis arise.

Michael Sansoterra of Virtus Silvant Focused Growth Fund advises investors on how to profit in stocks by purchasing great companies at less than their worth and waiting for the market to understand them. Stanley Black & Decker, UPS and Ford are among the companies he recommends as prime candidates that fit this model.

Nvidia is another one of his recommended stocks. Investors should approach AI revolution like any other technological shift: by purchasing industry leaders that can quickly implement this revolutionary new tech into revenue growth opportunities.

If you want to invest in stocks, your employer may provide a 401(k) plan that allows you to choose mutual funds or open an individual brokerage account (other fees apply). Or consider opening an IRA that gives access to different trading platforms including commission-free fractional trades as well as an easy mobile app for investing on the go.

Bonds

Bonds offer an excellent way to preserve capital while earning regular interest payments. At present, fixed-rate bonds dominate the market; these investments offer guaranteed principal return plus a fixed rate of interest over a specified time frame – providing diversification for portfolio diversification and protection against inflation. You can buy bonds online stock brokers such as Robinhood which was recently named among Investopedia’s list of best online brokers for beginners.

Bonds offer an ideal investment option in 2024 as inflation is predicted to return closer to central bank targets, according to UBS. This should lead to lower interest rates and make bonds more desirable than stocks. To maximize your return potential, aim for high-quality government and investment grade corporate bonds with strong balance sheets; to do so use Investopedia’s free Bond ETF Finder Tool which displays each bond’s price, maturity date, coupon rate (annualized interest paid out) as well as price history information for each bond you find interesting.

Real Estate

Real estate investing can be one of the most effective strategies for increasing wealth. It offers low risk with potentially high returns and tax benefits. But like any investment, real estate investments require careful analysis. When making this decision it is essential that all risks and benefits are assessed prior to investing.

Residential real estate market will likely experience a slowdown this year, due to steep home prices and increased mortgage rates which have limited buyer demand. It is important to keep in mind that such trends are temporary and will eventually reverse themselves.

Real estate investments offer an excellent way to diversify your portfolio in 2024. There are various types of real estate investments available, including commercial and industrial properties which tend to be in high demand due to their proximity to cities’ job centers.

Commercial real estate (CRE) industry faces numerous headwinds in 2024. Rising interest rates, an increase in work-from-home employees and decline in stock market performance have all taken their toll. Yet some sectors of CRE will perform exceptionally well: multifamily housing units, the digital economy (cell towers and server farms), as well as industrial real estate properties are likely to thrive despite these obstacles.

Foreign Markets

Economists are notoriously bad at forecasting recessions, yet several leading indicators point towards 2024 as being its beginning. This may be because several factors are converging to lower global growth while keeping inflation elevated despite oil price reductions.

There are various strategies for investing in foreign markets, including international funds, ADRs, direct investing and mutual funds. When choosing the best approach for you it’s essential that you keep both costs and risks in mind before making a final decision.

UBS advises investors seeking safe haven investments to consider quality bonds as they offer low yields but could increase in value should rates not reduce anytime soon. Furthermore, consider purchasing cryptocurrency following its halving event next year for diversification purposes and reduced risk management purposes as well as taking advantage of short-term panics.

Fixed Income

Bond investing can be an excellent way to diversify your portfolio, with interest rates currently at historic lows and yields offering attractive returns. But with inflation expected to climb this year and the Federal Reserve likely resuming rate increases soon after, ensuring an adequate mix of bonds with higher-growth investments is key for long-term financial health.

Experts we consulted for this piece advocate that investors seek businesses with strong competitive positions, high barriers to entry and strong balance sheets. Artificial Intelligence, Experience Economy and Energy have also been identified as promising areas of opportunity in 2024.

UBS predicts that cash won’t reign supreme in 2024 and advises optimizing returns by purchasing quality bonds like government and investment grade credit bonds. They suggest government and investment grade debt as ideal choices that will mitigate capital loss risks while adding stability to a portfolio, plus possibly take advantage of rising dividends by purchasing UK-listed companies with generous dividend payouts that allow pound cost averaging. Your advisor can assist in finding an optimal mix for you.