As the global financial markets prepared for another period of turbulence, it seems clear that the long-term sustainability of the economic recovery cannot be guaranteed. This is creating a set of far from ideal circumstances for investors and traders, who must surmount rising odds if they are to operate profitably and get the best possible value from their hard-earned capital.
With this in mind, it stands to reason that the average investor should be constantly looking to adapt and evolve their portfolio. Without this type of proactive philosophy, it is almost impossible to maximise profit and obtain the best possible returns on your individual investments. In an age where the global economy seems to fluctuate between boom and bust with alarming regularity, the ability to be flexible with regards to your investments will stand you in good stead.
3 Investment Options for 2014
With this in mind, let’s take a look at three of the most appealing investment options for 2014 and the reasons behind their rising popularity. Consider the following: –
Prepare for a Weaker Dollar in the Long-term
As anyone who has ever traded currencies can testify, investing in the forex market can hardly be described as a reliable vehicle for your capital. That said, it does deliver significant returns to knowledgeable traders, while advancements in technology have also made it far easier to identify and capitalise on real-time trends. Take the current market, for example, which is being characterised by significant fluctuation in major currencies such as the US Dollar (USD) and the Euro (EUR). Despite its recent gains, however, the US Dollar is likely to weaken as the year unfolds, meaning that alternative currencies will provide more reliable returns for investors.
Invest in your Retirement Fund as Early as Possible in 2014
With the failure to save placing a significant strain on public funding, governments’ in the Western world are moving towards the initiation of compulsory contributions for citizens. This should be necessary, however, as every working individual should look to invest in their pension plan as soon as possible in 2014. By starting now you can capitalise on tax-advantaged growth, before the deadline for this financial year passes on April 15th. This not only guarantees a viable return, but it also provides significant peace of mind for hard-working households.
Embrace the Trend for Global Investments in the Year Ahead
Increasingly, there has been a significant shift and distribution of economic influence from developed nations to those that are continuing to develop. This trend was reaffirmed recently, as the recovery of the Chinese economy encouraged experts to suggest that it will supersede the U.S. as the world’s most dominant financial power by the year 2030. This means that investors should actively look to invest in emerging markets, with low-valuation stocks and equities offering an excellent opportunity to maximise your returns. Such diversification will serve you well, and strengthen your portfolio to suit an evolving socio-economic climate.