Australian investors are incredibly fortunate to have a wide variety of options available in terms of investment strategies. However, the questions often arise, what to invest in? Most financial advisors and experts agree that holding a variety of investments is a sage idea. However, in today’s economic climate knowing which investments are sound ideas and which might be best left alone can be confusing. The following article describes several of the best investments ideas in Australia for 2019 through 2020 and the coming years.
Investments in gold are much safer than other investment options available today. Whether you choose to take physical possession of gold in the form of coins or bullion or you decide to use any of the several online gold purchasing options to trade gold on paper, it is essential to research gold purchasing in-depth before investing. Gold investment can be an excellent method of diversifying your portfolio. Traditionally gold is negatively correlated to stocks and can make a reliable hedge against stocks in your portfolio.
By and large, commodities have been one of the best investments of 2019. While the commodity market involves a great deal of volatility, the potential for high returns attracts many investors. In recent years commodities prices have outperformed stocks and bonds. One reason is that the demand for commodities from developing countries is increasing Commodities also move up when stocks go down. Commodities are real assets, unlike stocks and bonds, and they react differently to changing economic conditions. Again adding commodities to your portfolio is a very sound method of diversifying your portfolio.
Mutual funds are another excellent investment option in 2019 and 2020. Investing in mutual funds can help you avoid risks associated with direct stock trading. Most mutual fund companies provide the opportunity for investors to invest in companies with substantial capital and earnings in addition to small companies experiencing high returns. Fund managers closely watch global markets and trends and adjust their strategies based on changes in the market. The result is that many mutual find investors realize a steady return on investment as their portfolio
Property and real estate are still considered one of the best investment option in Australia. Both commercials, residential and rental features as well as property situated in popular tourism areas all provide a healthy return on investment for those in the market today. Both capital growth from real estate investment and recurring income from rentals make property investment an attractive proposition to many Australians today and one of the most lucrative asset class investments available today.
While these investments are predicted to provide stable returns in the coming years, they are by no means the only forms of investment that you should consider. Consult with a professional financial or investment adviser to help diversify and build your portfolio and as always steer clear of investment strategies that sound too good to be true.