Many during the war refuse to invest money. But I recommend that you keep doing it – the main thing is to choose an area where you will get the best return on investment.
Consider the most popular destinations, their pros and cons. Also in this column I will tell you where I invest myself and why I think this tactic is the most effective.
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Crypt
My expertise is in the field of business, but even I had to level up in cryptocurrencies this year. This is because this topic constantly appears in the media and social networks – and even I am asked if it is worth investing in crypto.
It is obvious, especially in the last autumn months, that the value of the cryptocurrency depends too much on the circumstances. But, despite the fact that the crypto market either “falls into a bear hibernation”, or it is stormy, people still continue to buy this asset.
For me personally, cryptocurrencies and making money on them seem too complicated. At the same time, I know people who make money and even businesses on this.
But they are really experts who have spent time studying the mechanisms of how cryptocurrencies work, are able to predict them, and even intuitively feel the signals in the information field that can lead to exchange rate changes.
For example, in the summer of 2022, many sold assets, and large investors bought them up, having received a return on their investments, although not too much.
I am more of a business person who monitors economic processes. For example, I understand why US residents massively invested in crypto in 2020-2021: because of the coronavirus, people received government support, free money appeared that they invested. But from my point of view, such situations are not expected in any country in the world in the near future.
Real estate
In the minds of people, real estate, even during the war, remains an area worth investing in. Indeed, if you have cash now, you can buy real estate that has fallen to a record low in value. That is, prices will be half the pre-war prices. But I wouldn’t recommend it, and here’s why.
A similar situation was in America when the crisis hit there in 2007. My friend bought luxury real estate in Manhattan very cheaply. But 15 years have passed, and it has not returned in price to the level that it was before 2007.
I think if he waits more, then the return will occur (although there are objects that will never reach the original price). Therefore, I do not invest in real estate – for me it is too long, the results are needed faster. But if you are willing to wait, then you can invest.
Stock
For me, stocks are more attractive than cryptocurrencies, because their fluctuations are more tied to economic processes that I understand. This means that it is easier to make forecasts and get a return on investment. But it’s not enough just to monitor business news, you need to dig deep and understand.
This year, there was a situation where Netflix shares fell by 30%. This was after the presentation of their annual report, where they said they expected a drop in the number of subscribers by 2 million. The company’s share price fell sharply. But, if you look at it, Netflix announced the loss of only 1% of subscribers, since there were 200 million of them at that time. And all because this event was presented with a negative tone.
Another important point: the value of the shares of many companies is too high. For example, the ratio of the value of the shares to the income of the company is 80 to 1, they are 80 times more than the shaft for the year.
But still, I can recommend investments in stocks, they are especially good for top managers, experts and specialists with good earnings.
True, you still shouldn’t take it as an opportunity to get rich quick: I would call it a pension, because you will earn 7-8% annually. You can also look into mutual funds.
Own business
I have always been a supporter of investing in my own business, and not in other people’s projects. Any entrepreneur who builds a business from scratch and makes money from it becomes an expert. And he knows much more about it than about stocks, cryptocurrencies, real estate.
Therefore, when I earn money in an area of expertise for me, I do not invest it in another, more risky area for myself. For me, it is better to invest in new projects or products of the company, because from this I get a much greater return on investment.
Right now, the best thing that entrepreneurs can do to strengthen the economy is to make their business “solid” and grow it. But, of course, the owner can receive passive income only if the business is well organized, there is no chaos and daily “putting out fires”.