So, you are one of those who managed to save a little money from the blood-sucking economy that is hell bent on ruining out status of living, and now you want to know as to what could be the best investment?
First of all, we would like to congratulate you upon saving some funds and asking for expert opinion. Well, as far as investment is concerned, the typical mindset would always think of a few things: prize bonds, gold, stocks, real estate and Bitcoin.
So it led us to wonder: Where is the best place to park your cash?
Over the years, Bitcoin has performed strongly with significant returns and continuing customer adoption. Of all currencies worldwide, Bitcoin yielded greater returns than any for 5 out of the previous 6 years (2011- Bitcoin +1500 percent, 2012- Bitcoin +299 percent, 2013- Bitcoin +5400 percent, 2014- USD +13 percent, 2015- Bitcoin +37 percent, 2016- Bitcoin +130 percent, 2017- Bitcoin +300 percent). These are outstanding payouts over a 5-year stretch for any asset, stock, bond, derivative, or currency. With bitcoin soaring again, the underlying computational network stronger and more secure than ever, and a multitude of reliable, user-friendly wallets services, applications, and resources arising, is it time for investors to take a more serious look at investing in Bitcoin?
3-year annualized return: 11.8% (with dividends reinvested)
1-year return: 1.8%
Over the past 5 years, the grouping of major technology companies known as FANG (Facebook, Amazon, Netflix, and Google) stocks in total have performed well, with Amazon seeing 342.02 percent 5-year returns, and Netflix seeing an astounding 1156.9 percent, and Google seeing 148.36 percent.
While these familiar companies garner a majority of the attention, a 5-year technical analysis demonstrates bitcoin’s long-term reliability, resilience, and propensity to provide significant returns for investors to outperform these traditional investments. An investor who invested in Bitcoin 5 years ago would have seen total returns of 22,004 percent! Given the risks of investing in the new, formerly experimental, and open-source Bitcoin Blockchain technology, it would make sense that such strong long run returns would arise.
3-year annualized return: -8.5%
1-year return: 3.5%
Gold is down by 29.66 percent sitting at a near 5-year low. Gold is a tangible inflation hedge, a liquid asset, and a long-term store of value. As a result, it is a sought-after asset class and a strong competitor to stocks. Gold is regarded as a great diversifier because of its low correlation with other asset classes, especially stocks. This becomes more pronounced in tougher times when gold often acts as a rescue asset.
Conversely, Bitcoin is on the verge of being worth more than an ounce of gold for the first time ever, with gold at $1155 and bitcoin again trading at $969.00 at the time of writing. This is a significant shift away from traditional investing logic as well, as Bitcoin’s portability, security, and global nature are increasingly appealing to investors who may have otherwise looked towards gold or silver as a hedging investment.
Bitcoin, traditionally viewed as a “digital gold”, contains overlapping properties of limited scarcity and its resurgent rally combined with the relatively cheap price of gold shows that perhaps now is an opportunistic time to buy the two. Particularly as instability and uncertainty geopolitically may turn investors back towards both modern and digitally scarce stores of values in 2017 and beyond.
3-year annualized return: 6.8%
1-year return: 4.4%
The top 1% invest in Real Estate. They’re not caught up in the crypto craze like everyone else. You know why? Because it works…
If you have the right time horizon and invest in good markets, income producing properties have proven to appreciate in value over time.
When investing in real estate, you can buy and own property. This means becoming a landlord. You buy a house, duplex or multi-family dwelling like an apartment complex and collect rent. The returns can be very high, because you don’t have to pay in full for the property. You make a down payment, and the bank finances the rest. But you get the rental income and appreciation from the property. That is leverage.
You can do this alone, or you can form a partnership with like-minded investors. This can help you spread some of the risk, and you may find people who are more knowledgeable than you when it comes to real estate.
Before you consider buying property, ask yourself if you have what it takes to be a landlord. There are a lot of headaches, and none of them are routine. Things break, accidents happen, and people fall behind on rent. You may hire a management company to handle all of this, but of course that will cost money.
Your Own Business
You can use your money to invest in your own business. This can produce the highest returns of all your investment choices. It can also fail and cost you a lot of money and sorrow.
However, many businesses produce a nice, steady income and grow over time. Think about areas where you could be a consultant, or try an online business, or think about a shop you would like to open. Whatever you choose, you will need money to start a business.
One way to approach this is to only put part of your money into a business and invest the rest elsewhere. This approach can save you some sleepless nights. Another approach is to create a part-time business, something you can do on evenings and weekends. That way, you don’t have to give up the security of your regular job, and you will be making extra money.
Your risk is that the business could fail, or the original owner might not be able to make payments to you periodically. Use a lawyer to set up the paperwork so you will be protected if the owner defaults.
If you don’t want to own your own business, you may want to consider owning part of someone else’s. Start-up companies that need money offer shares of their companies on equity crowdfunding sites. If you buy shares of the company, you own part of it and will be rewarded if the company succeeds.
The risk is that if the company fails, you lose your money. However, there have been some equity-funding success stories, such as Cruise Automation. This company develops self-driving technology and was largely developed through equity crowdfunding. General Motors bought the company, creating profits for investors, and giving an air of legitimacy to the crowdfunding industry.
You can put your money into equity crowdfunding by starting with just a few hundred dollars.
3-year annualized return: 23,6%
1-year return: 4.8%
Classic automobiles used to be solely a passion of wealthy collectors—now they’re a bona fide asset class. And ever since the market began moving beyond the province of rich-guy car geeks, including Jerry Seinfeld and Jay Leno, into the (relative) mainstream, it’s been on a tear. But after years of rapid growth, price surges at the top of the market are finally hitting the brakes, according to the Hagerty “Blue Chip” Index, which tracks 25 of the hottest collectible automobiles of the postwar era. While scads of vintage cars tracked by the index have been relatively stable for years, one Ferrari model is the biggest outlier: The 1958 Ferrari 250 GT California LWB, now valued at $12.3 million if in good condition, has seen 41% annual growth over the past three years. Seen one at any garage sales?
3-year annualized return: -8.2%
1-year return: -25.2%
After years of insanely surging prices in the fine art market—driven largely by hot-to-trot nouveau riche collectors, particularly from China—the hype seems to be cooling off. In 2015, Christie’s International, the world’s leading auction house, reported a 5% decline in annual sales, ending five straight years of growth, Bloomberg reported.
Even the greatest artists of the 20th century have seen their currency slip, as evidenced by the recent sluggish numbers from the Artprice Global Index. In February this year, Picasso’s 1935 oil painting “Tete de Femme” sold for $27.6 million, a far cry from the $39.9 million that the owner had paid a little over two years ago. Bad Pablo! An Henri Matisse drawing that was sold for $383,500 also incurred a nearly 20% loss to the seller.
3-year annualized return: -4.1%
1-year return: 0.7%
In November 2013, a mystery buyer (whom we’d seriously like to be friends with) paid a record $476,405 for a 12-bottle case of 1978 Romanée-Conti grand cru in Hong Kong. Investing in wine is hardly a new phenom, and despite such high-profile wins, the wine market also has its highs and lows of late. According to the Liv-ex Fine Wine index, which tracks the 100 most sought-after vintages, the market hit a peak in 2011, followed by four years of declines and one year of stabilization. As of February 2016, the index stood 0.7% higher than last year.
Some of the most in-demand investment wines are fine Bordeaux, grand cru Burgundy, as well as Napa cabernet sauvignon and tête de cuvée Champagne, according to Wine Folly. What’s the biggest difference between wine investment and others? In the worst-case scenario, you can drink it. Cheers!