2021 will be an important year for investors: once the Covid emergency has been overcome, investors will find themselves dealing with a new economic and financial cycle that will have characteristics and peculiarities different from the past one. If you are looking for safe investments, here are the main lessons you should keep in mind:
Market risk exists, as the first half of the year demonstrated. But equity markets have shown tremendous resilience. You need to know how to become a merchant service provider and then go for it.
Rates will remain low for a long time. “Safe” or guaranteed investments pay off, which in a scenario of rising inflation will struggle to guarantee a real positive return.
The market falls and rises at an impressive speed, predicting its trend in the short term is no longer a viable path for the non-professional investor: it is better to structure a long-term plan that manages risk and exploits the strength of the stock markets.
Everyone wants safe investments. But what does it really mean?
When it comes to investing securely, it is often easy to get confused. Obviously everyone would like to focus on risk-free investments: but what exactly is meant by safe investment? For some it is an investment that gives an income guarantee, with instruments that cannot generate losses: unfortunately the reality of the markets is more complex.
If you want to achieve results you have to expose yourself to market risk, or the possibility that your investment will also go at a loss. The prospect of facing a loss is what drives many investors to seek excessively prudent investments (we will dedicate a session of the article to this type of solutions). This is a crucial mistake: in the long run, adopting an approach that is too conservative can cause the loss of return opportunities that risk compromising the objective of capital growth and protection from inflation. This is particularly true in 2021, where low rates and rising inflation prospects have virtually eliminated the return guarantees of capital-guaranteed or market risk-reducing instruments.
A safe investment therefore:
- It is an investment recommended by a serious and reliable broker.
- It is an investment built according to risk fees that are suited to the investor profile.
In the following article you will find a list of some of the main precautions to follow to get a better idea on how to invest safely. It must be remembered that, however, as there are no guaranteed investments, there are no solutions suitable for all budgets: each person has a different propensity to risk and needs. If you do not want to risk making important mistakes that compromise opportunities, the advice is always to contact an independent consultant who can guide you in your investment choices: today this option is available to all savers.
Safe investing: which investment to choose to invest savings away from excessive risks
A large number of financial instruments are generally perceived or sold as safe investments. In reality, these instruments are not always the right choice for the investor or are risk-free. Below you will find a small guide to these tools, in which we will try to better define their characteristics and clarify their advantages and risks. We will offer some general advice later.