After a period of very long and damaging COVID-19-induced sleep, the start of 2022 finally brought back hope that the world is falling back in line and going back to its regular doings. This renewed life pace should be accompanied by drastically increased business activity so if you ever wanted to branch out as an investor, the year 2022 should be the right time to cast the dice.
However, it should be pointed out that this revival won’t work for all industries equally. A recent article by Forbes confirms that the markets in 2022 will be driven by the COVID necessities while inflation will keep building up throughout the rest of the year.
So, a high level of caution is prescribed. Let us take a look then at some of the markets that do show actual promise and make sense for your first investment ventures.
Short-term government bond funds
If you are unfamiliar with this type of option, government bonds are not unlike mutual funds or EFTs. This time, though, you are investing in debt securities that are issued by the US government, so they don’t present such a big risk if the interest rates rise due to inflation as they expected to do by the end of the year. Also, since we are talking about the short-term bond funds you can expect to get a very good turnaround and keep the cash flow stable which is not the case with some of the long-term options. All things mentioned make bond funds an ideal pick for inexperienced and risk-aware investors.
Health care industry
We can easily put casual fitness and wellness under this same umbrella because they got the renewed interest due to the same reasons and have the same end goal in mind. If there is one good thing we can say about the COVID-19 that would be that the pandemic cast a bright light on just how bad was the state in public health found itself prior to the pandemic. Be that as it may, new assets and improved services are required across the board as well as the expansion of the public health system. Wellness and fitness should get a huge rub out of this development as well so feel free to stick your landing where you like.
Foreign real estate
The real estate world was always one of the most enduring industries in existence, so even if you decide to invest your money in the US you can count on good returns. But, if you want something faster and safer, you can start looking for European markets. Let’s take a look at Montenegro – a small European country with beautiful nature, great prices, excellent tourist potential, and EU membership in its back pocket. If you, for instance, look into towns like Herceg Novi, you can buy your perfect real estate in Montenegro no matter whether you are interested in tourism, the luxury sector, or the commercial sector. Definitely worth checking.
Renewable energy
The recent developments in Eastern Europe showcased the overall fragility of global dependency on fossil fuels and energy sources. Renewable energy doesn’t have such problems, and the unfortunate circumstances we have experienced recently will only give an additional boost to the development of the new tech and energy sources. According to a recent study, the renewable energy expenditure 2021-2026 will grow 50% compared to the previous five-year period. So, there is an excellent opportunity for you. The projects are also backed by industry giants like Amazon which is always a good sign to go.
High-yield savings accounts
This investment option works very similarly to the regular bank savings account so you, effectively, get interests based on the cash balance you have on the account. Also, services high-yield savings accounts will keep your cash easily accessible so you are always able to move the money to the primary account. The main difference here is that the high-yield savings feature far lower overheads and you typically earn much higher interests than the pennies you get from the traditional bank account. However, there is a danger that inflation can cut into your earnings so keep this option as a way to diversify your portfolio.
S&P 500 index funds
Last but not least, we would like to quickly cover the S&P 500 investment funds that put your money into the 500 most profitable companies in the United States (e.g., Amazon and Berkshire Hathaway) making you, just like in the case of traditional bonds, a partial owner of these juggernauts. The good thing about this option is that, since your investments are spread across the board, you do get instant diversification and excellent protection on the investment. On the other hand, this lack of volatility keeps your earnings at no more than 10% a year, which is still a good figure if you are just starting out.
We hope these few examples will help you get a clearer idea about the most lucrative investment options in 2022 as well as devise strategies that will optimize your earnings by the end of the year. The most important thing to take away from everything we talked about above is that the energy and health sectors are still under pressure so the entire economy finds itself in a state of constant peril. That is why you should keep your investments as diversified as possible and put your funds into sectors that will actually drive recovery.
