
Taking a Long Term Approach to Investment in 2022
We all know Investing is an excellent way to save up for retirement, college tuition, or any other purpose. But there are 2 forms of investments when it comes to time; Short term and long-term.
Most people, especially wise investors, prefer long-term investments as they are safer and provide more significant returns. It’s common sense that the longer you place your money in an opportunity, the more chances it has to grow. So you will get higher returns even when you invest little,
On the other hand, short-term securities are very risky; they might provide you with quick returns but focus on the word MIGHT. The chances of getting profitable returns are not very high and don’t happen all the time. So you have to get very lucky indeed.
So instead of leaving yourself in the hands of luck and fate, why not use automation and software to find the best long-term investments.
We have listed down 3 long term investments that can provide good returns over time:
Long-term Government Bond and Funds
Even though most Government bonds are short-term, there are Long Term Government Bond as well. However, most people haven’t heard of them as government usually issues t-bills which last from several days to 52 weeks.
However, we believe treasury bonds with long-term maturity of 10-30 years are more profitable. These bonds, usually called T-bonds, allow investors exposure to the long side of the bond market without facing much risk. As the government backs these, they dont have default risk attached and are very secure.
Then you also have the option to invest in government long-term bonds funds, which are mutual funds consisting of different governmental debt securities. These funds are a good choice for beginners, risk-averse people, and investors looking for cash flow (as they are more liquid than individual bonds).
Even though government bonds and their related funds are the safest security as they are backed by the full faith and credit of the state, they do provide varying and less than average returns.
Moreover, their prices are dependent on interest rates. So if there is an increase in interest rate, the prices of bonds can drop considerably.
That is why we recommend that you invest in the bonds as a safety net and have other investment portfolios. Use Zeus to make more informed decisions and find more worthy long-term investments now!
Funds like S&P 500 index funds and Nasdaq-100 index funds
Investing in individual stock can be risky as it can lead to huge losses if a company plummets. However, a safer approach is to invest in funds such as those based on the Nasdaq-100 or S&P 500. But remember, this is a long-term approach and provides you with an average return.
Nasdaq is an excellent choice for those who wish to gain exposure to the biggest tech companies without making the difficult choice of picking only one. If you dont have time to analyze specific businesses, why not invest in them all together via these funds based on the top 100 Nasdaq companies. It includes big names like Apple, Microsoft, and Meta, making it very profitable.
However, these funds dont come cheap. It does offer immediate diversification but at the cost of volatility. As these funds contain tech companies, they can face a down run if the IT market falls. Moreover, the high valuation of the member companies means that they are prone to falling from this high value too.
So we would recommend investing in other options as well to ensure that you have a diversified portfolio. A good way to achieve this would be using tools like Zeus to explore more stock options. The software algorithms it provides can help you revolutions your trading.
Real Estate
Real estate is slightly different from the investment options mentioned above as it belongs to the property market instead of the financial market. However, it does provide a good long-term investment option, so we have mentioned it here.
Commonly known as property investments, this form can be a cash cow only if you find a truly valuable piece of land. The downside of this investment is that it requires large sums. The entry points in the property market are also very high. So you can only think about investing in real estate if you have a lot of cash.
Moreover, property investments do not provide as many options as the ones available in stock markets. The number of properties around you will be limited, and choices will dwindle quickly. Lastly, as properties are illiquid, it takes time to sell them. So your saving will be tied up in one asset, which can be pretty risky,
You can always mitigate risk by investing in real estate funds, more commonly known as REITs (Real estate investment trusts). But we will advise you to keep a financial security portfolio along with a real estate portfolio for better return and diversification. In addition, you can always use an Algorithm to help you develop an optimal long-term trading strategy.
So are you willing to buy the property or invest in a property-related fund?
Last piece of advice
It is best if you start investing today. Time is of the essence here as the longer you wait, the more you lose on profits. Instead of accumulating large sums invest little sums and make them large.
So there is no point in letting your savings rot in bank accounts. Instead, make the most out of them by using Zeus Capital to increase them by fold.
Start investing now, and let us know how your investments pan out!