These days, there seems to be a lot of uncertainty with regards to how the economy will do in the coming year. Inflation is high, prices for a wide range of goods and services have gone up and are likely to remain elevated, and there are still questions surrounding what will happen to the world because of the global coronavirus pandemic.
One of the ways to ease your fears about the future is by focusing your attention on wise investment strategies to leverage your spare cash. These can help you rest assured that, even if the value of the U.S. dollar decreases and you aren’t able to buy as much with it as you used to, you will have other assets that will retain their value and hopefully continue to appreciate in value as well.
What are some of the investment strategies to consider for 2022? HotForex created the handy infographic below, and we’ll discuss a few of its main points to give you an idea of where you can get started.
Table of Contents
Invest in Commodities
As the world continues to open up and meet the demands of businesses and consumers, commodities are increasing in value. Therefore, investing in certain commodities can be a good way to hedge against inflation. According to HotForex, some commodities that you should consider investing in include oil, silver, palladium, and copper. That’s because their value has increased and the demand for these materials may remain high thanks to their use in a variety of industries around the world, including the increasingly popular “green” industries that are expected to continue growing in coming years.
Buy Gold
Another smart investment strategy that is worth thinking about for 2022 and beyond is one that people have turned to time and time again in the past: buying gold. This is yet another way that you can hedge against inflation by investing in an asset that tends to appreciate in value, giving you greater peace of mind even if the value of your currency isn’t doing so well. According to HotForex’s infographic, gold generated over 24% in returns in 2020, and two of the biggest consumers on the planet are China and India.
Trade on the Forex Market
You have heard of trading on the stock market, but have you heard of the forex market? This can be a good way to invest your money in 2022, especially if you aren’t a fan of the high risk that can come with trading stocks. Put simply, when you trade forex, you trade currency pairs, such as GBP/USD, USD/CAD, and EUR/USD. And getting started is easy. For instance, you can download MT4 for your PC or Mac, as this platform will give you what you need to trade smarter and more efficiently so you can take advantage of changes in the values of currency pairs to make the biggest profits possible.
Environmentally Conscious Investment Strategies
Investing in the stock market to solve climate change has quietly become a thing in some circles. While the idea of green investment strategies has been around a while, the reality didn’t always have teeth. Environment-abusing companies often turned up in portfolios. The financial services startup, Carbon Collective, uses an algorithm that adjusts your portfolio on the fly but always stays entirely invested in companies that operate in harmony with the environment. If you’re interested, check out their Climate index to see exactly which companies are suitable for climate change investing and why.
So Many Great Options to Consider!
As you can see, there are several investment strategies that are worth thinking about as we move into 2022. If you are concerned about being able to grow your money and maintain a comfortable way of life, making wise investments today is worthwhile. And, remember, if you have any questions or concerns about the path you should take when it comes to investments, you could always consult with a professional financial advisor you can trust.
