Insights

In this article, we look at some of the best assets you can invest in this year. With rising inflation, economic fallout from the Coronavirus, and other factors, it’s crucial to stay on top of the investments that will protect your wealth. For more information on investment options and meeting your financial goals, contact Alpen Partners for a unique wealth management plan.

Investing Basics

There are so many different kinds of investments to choose from these days. There are stock and bonds, physical assets like cars and real estate, or digital assets like Bitcoin. Every type of asset offers its own benefit. For example, real estate is an easy way to diversify your portfolio or tap into an international market. Bitcoin and other cryptocurrencies offer unique investment opportunities for tech-savvy and innovative investors. There are even SRIs which allow investors to align their personal goals of making an impact on the world. For a successful portfolio, it’s essential to diversify the types of assets. In some cases, holding assets in offshore locations is another way to lower your risk profile. Creating the right portfolio requires taking a look within yourself to decide what your goals are. It can be challenging to understand the complexities of every market to decide which asset classes are best for you and achieving those goals. Alpen Partners can create a unique investment plan for you!

Best Places to Invest

Below we have summarized some of the best investment types to make in 2023. Please note that the summaries below alone cannot act as financial guidance. For more information on building a successful portfolio, work with a skilled professional.

Stock

Stocks are a staple of any portfolio, and it doesn’t seem like their popularity will be dwindling anytime soon. A stock is a portion of a company that investors can purchase, sell, and trade. Also known as equity, a stock offers a piece of the company as a share. The price of a share is based on an estimated value of the company and how many shares are being issued. The reason buyers and sellers continue to trade their stocks is that the perceived value of the company changed over time. Some investors lose money depending on how well they can predict the market. The market is a big sea of investors and traders who buy and sell shares, changing the prices. The goal in the stock market is to make money through buying stocks in companies that are expected to perform well.

Real Estate

One of the biggest draws to buying international real estate is diversification. Any skilled investor will tell you that the root of a strong portfolio is placing capital into a wide range of asset types. A real estate investment also allows investors to tap into foreign markets easily. Many clients who only have portfolios with only domestic investments will purchase real estate to expand their reach and protect themselves against market risks. Many countries make it easy for foreigners to invest in real estate and even offer incentives such as permanent residency. The Portuguese Golden Visa is one of the most popular ways for investors to earn European permanent residence. This is especially attractive for those looking to expatriate or those who want to earn a second passport in order to extend the amount of visa-free travel that is possible. This can play a crucial role in offshore retirement or years of stress-free travel. Currently, the US real estate market is booming. Low-interest rates have made it very appealing for buyers, especially in large cities like Los Angeles and New York City. London and Berlin are two European cities that have remained strong and are expecting to see growth in the real estate market.

Gold and Precious Metals

Raw materials are a nearly sure-fire way to protect yourself against inflation. Precious metals like gold, silver, and platinum are considered commodities, which have a long history, much longer than stocks and bonds. Ancient civilizations ran completely on trading materials.  Today commodities, like precious metals, can be an excellent way for investors to grow their portfolio or protect themselves from inflation, so investors will often buy gold to hedge against the decline of a currency. Evidence tells us gold is the best hedge against a stock market crash, and the price of gold increases dramatically after a crash. For example, during the 2008 financial crash,  investors left behind the dropping stock market and began repurchasing gold. The price of gold will typically rise and fall with the cost of living. Gold isn’t the only precious metal attractive to investors. Silver has many industrial uses in most major industries, so it has become quite popular among investors. Silver is also less expensive than gold, so it is easier to make smaller investments in silver. The world demand for silver is growing. Many major government mints are experiencing a rise in sales of silver, especially in India and China.

Swiss Franc

Investing in another country’s currency is a great way to fight inflation. The Swiss franc (CHF) has always been one of the best investment options for individuals looking to hedge against currencies with large amounts of debt. Switzerland’s robust economic system with controlled requirements and slight growth makes the franc very appealing for investors from more tumultuous economies, such as the United States. In fact, during the European debt crisis in 2011, the EU international investors began relying on the Swiss franc, which drove up the currency’s value. The Swiss franc remains a safe haven. With a strong financial system and a competitive economy backing the franc, investing in the currency proves to be a smart decision. American clients love this investment option because the Swiss franc has had low short-term volatility in the exchange between the CHF and USD. The monthly fluctuation in the exchange rate of the dollar and the Swiss franc has averaged around 1.95% since 1999, which is higher than the monthly change in the exchange rate of the euro and the Swiss franc, sitting around 0.85%.

Invest with Alpen Partners

If you are looking for financial success, build your portfolio and create a personal wealth management plan with Alpen Partners. We analyze our clients’ personal situation and market environments to implement a plan that will meet your financial goals. We go beyond simple asset allocation. A successful wealth management plan involves many factors that cannot be maintained by a single person. Our experts are skilled in advising on investments listed above and much more, and we have strong relationships with banks that cater to high-earning clients. All investments involve certain risks. All investments carry the potential for financial loss, including the loss of the principal amount invested. Past performance should not be viewed as an indicator of future results. Market conditions and broader economic factors can significantly impact the value of investments. Investments in international markets are subject to additional risks, such as currency exchange fluctuations, political or economic instability, and variations in accounting practices. Alternative investments, including but not limited to hedge funds, private equity, and real estate, may be illiquid, speculative, and are not suitable for all investors. The above information should be considered before making any investment decisions. All posts and publications are for your information only and are not intended as an offer, promotion, or solicitation to buy or sell any financial instrument or perform any other financial transactions. All information and opinions expressed in posts and publications reflect our current views as of the date of the publication and may be liable to change without notice.