Are you interested in investing but aren’t sure exactly where to start? Or are you someone who already does a bit of buying or trading and want a good, solid guide to investing that will help you make better decisions.
It’s important to understand the common strategies, and part of this relies on knowing some of the differences in the asset classes. The term “asset class” simply refers to a group of similar investment types. Some people prefer to stick with one asset class while others are a lot more versatile. Starting out, it might be a good idea to stick with just a few similar investment types within the same asset class, and then consider expanding your portfolio as you get more experienced and knowledgeable.
Investment Types to Look For
Here is a quick rundown of the different classes:
• Fixed income or debt: The investor lends money to an institution (usually banks) or government and get interest in return. These investment types include CoDs and bonds.
• Equities: Actually purchasing shares in something (stocks).
• Real estate: Buying, owning, and ultimately selling a physical property when the time is right. You obviously aren’t required to live in or even visit the properties you invest in.
• Cash and cash equivalents: The investor puts the money into an interest-paying savings account or trade currencies.
• Commodities: Similar to real estate in that you would own physical things, except that it’s a “common” product, item, or resource that many people need, such as precious metals, fossil fuels, food, etc. You are not required to actually have them physically in your possession.
• Derivatives such as futures: this means that you own trades themselves (options and futures), and the value of it depends on the underlying asset. This asset class can be complicated, so if you’re interested, you’ll need a detailed guide to investing in them.
Guide to Investing in Stocks
If you are interested in stocks, then you should join a good newsletter and resource program that offers all of the tools and guides you need for investing in the best stocks. There are a lot of so-called “experts” out there who claim to offer “top stock picks” but they all can’t be right. The REALLY GOOD, legitimate experts don’t give out their picks for nothing. This is why the best newsletters usually require a subscription.
The best guide to investing – particularly with a long-term outlook – is Motley Fool. It’s a highly, HIGHLY recommended platform that includes newsletter subscriptions, resources, wealth management tools, and so forth. They are particular known for their top-notch stock picks.