3 SMART WAYS TO INVEST $1000 IN 2018
You hear it all the time: Put your money to work for you. But how exactly should you be investing your money? And what if you want to start with only a $1,000 investment?
Is this possible?
After all, many financial advisers have investing minimums…
And say you put a $1,000 investment, could you really expect a significant return?
The answer is yes, there are smart ways you can invest in the markets with only $1,000, and if you’re new to investing and just looking to test if it’s right for you, here are 3 of the top investments to get started with.
1. Invest in Gold
Gold has a history of holding its value which goes back thousands of years, as people see gold as a way to pass on and preserve their wealth from one generation to another. Gold has a history of holding strong against weaknesses in currencies. In fact, when the US dollar went down in value between 1998 and 2008, gold tripled its value and then went on to double over 2008 – 2012. People were turning to Gold as it provided a safe-haven to protect against the falling value of money. But it’s not just during the financial depressions that gold made rises. For the past 50 years, whenever the cost of living went up, gold prices soared along with it. Gold is also often called the “crisis commodity” because it managed to maintain its value even at times of geopolitical uncertainty. For example, the price of gold rocketed when the loss of confidence in the European Union battered Euro rates just last year. As a fact, Gold over the years has a reduction in supply: production of new gold from mines have been declining since 2000, and is lowering year by year ever since. It takes 5 to 10 years to bring a new mine into production, and labour costs are rising as well. As a rule, in a market where the supply is limited, the price increases, and this can be said for gold.
To further fuel the attraction, the demand for gold is increasing at an incredible rate, pushing the prices even further. Countries like China and India, where gold bars are a traditional form of saving, are increasing their demand for gold on a yearly basis, and the electronics industry is practically tied to gold.
The bottom line: Gold has proven to be a stable reliable long term investment with a bright future. If you’re looking to invest in something stable, which will probably last forever, get started here: Step-by-Step Guide for Investing in Gold.
2. Invest in Amazon
We all know that shopping online equals Amazon. The days of shopping malls and mega-stores are coming to an end in a revolution that was started in the US by Amazon, but is now opening more distribution centres in almost every part of the world. Amazon’s dominance affected the stocks of traditional retail giants such as J.C. Penney, which has already closed 127 stores in response to Amazon’s takeover of its business, Sears holdings, which are also planning to close more than 350 Sears and Kmart stores in an effort to cut $1.25 Billion in costs, as well as many other top brand names such as Macy’s, Kohl’s, Abercombie & Fitch, and even Office Depot which have closed stores in response to the growth of Amazon. As competitors fade away, more and more people are turning to online shopping solutions, and Amazon is becoming stronger and stronger.
And so the prediction that amazon will continue to deliver handsome gains to investors for many years to come does not seem farfetched, and there’s plenty of room for growth, in fact, 91.5% of the retail sales in the US are still conducted offline. That means the e-commerce sales, even after years of staggering growth, still comprise less than 10% of retail sales (around $2 Trillion). With millions more people gaining access to the internet every year, the fact smartphones provide even a much better shopping experience with native apps like Amazon’s, and the global expansion of Amazon’s distribution centres, it seems the potential for Amazon’s growth is still huge.
The bottom line: Amazon is at the top of the food-chain in a rapidly growing industry which is only at a 10% capacity of what it could be in a few years. There’s a good reason why the world’s top financial leaders such as warren buffet believe it’s only the beginning for Amazon. It’s no coincidence that Amazon founder Jeff Bezos toppled Bill Gates from his twenty year reign as richest man in the world this year. If long term is your goal, Amazon is top of the shopping list.
How can you invest in Amazon? Start with this step-by-step guide.
3. Invest in the S&P 500
What is the S&P 500 exactly? This is an “index fund” which holds 500 of the largest U.S. Companies in the United States. Companies such as Apple, Microsoft, Amazon, Alphabet, Facebook and Berkshire Hathaway are all featured in the S&P portfolio, so it’s hardly any surprise that professional investors favour this incredible option. Instant diversification on your investment portfolio means you are not tied to the success of one single company or asset.
The most respectable investment managers in the world will agree that you will be much better off in the long run owning the S&P 500 index fund instead of buying specific stocks. In fact, you are investing on the economy rather than on the performance of a certain company, which means unless you believe the world is going to collapse and become a post-apocalyptic wasteland within the next few years, you’ll be able to sleep at night, regardless of the unexpected rise and fall of individual stocks.
“I think it’s the thing that makes the most sense practically all of the time. The trick is not to pick the right company, the trick is to essentially buy all the big companies through the S&P 500 and to do it consistently.” Warren Buffet
If you agree with the advice of billionaires such as Warren Buffet who himself recommends putting 90% of your money into an S&P 500 index fund, you can do so here, and it will only take a few minutes.
So there you have it. The three most sort after investment options of today that offer stability and long-term growth. Thanks to the internet and online brokers, these amazing opportunities are no longer just available to those fat-cats in glass towers. You might be stuck working for today, but now you can let your money work for tomorrow too.
How can you invest in S&P 500? Start with this step-by-step guide.