Each year is a new year to improve your net worth. Invest by taking the money from your organized portfolio and put it into a cash-generating opportunity. You can make the most of this process if you prepare for the financial challenges that investors are likely to encounter in 2020.
Starting with a Reasonable Mindset
Making predictions into the future is a game that those successful in finance tend to avoid. For this reason, we want to, instead, establish “ideal forecasts” for what might come in 2020.
Moving to the Central Question—Should I Invest?
The one thing investors will struggle with in 2020 is the when, where, and what of investing.
There are endless options of where to put your money. The wide range of assets to diversify with will enter your mind through countless marketers and ad campaigns. Have you ever seen an ad for cheaper commissions from a new stockbroker? Maybe, instead, you encountered an ad about lower spreads? These are the first considerations that you have to make. 2020 will lead investors into promises of making more money—in less time than it took before.
Though there are no guarantees, here are some strong investment predictions:
– Stocks Are to Outperform the Dollar:
Every year it happens. Warren Buffet describes this as the law of utility. Companies provide solutions for society, and as long as they do, their overall value will continue to rise and be reflected within a rising stock market.
– Ownership is Still Better than Renting:
As you diversify your investments, be sure to work toward homeownership. Paying into equity, which is money that you can get back from real estate, is better than paying into rent, which is the money you put into the trash.
– Politics WILL Make for Volatile Markets:
Lastly, as you hold onto investments that you know are working, watch out for “news speculation.” It only takes the rhetoric of a politician to make investors believe that economic conditions are one thing, though, they actually aren’t.