Traditional or more conservative approaches to investments may have had their appeal years before, however, research reveals that those in mutual funds may be in for a shock. Around 95% of mutual fund managers under perform the market and while this might be in an effort to protect funds, it also doesn’t spell a good opportunity for growth. For investors, moving on to trickier investments might be an option to grow that wealth base, and thankfully training is provided in the form of investment simulators. Whichever route investors are keen on following, 2019 will certainly be an interesting year for investments.
Kicking The Broker To The Curb
One of the fundamental shifts that took place in 2018 was that the bigger investment groups caught on to a new form of investment: robo advisors. This shapes the way forward for investment strategies and 2019 seems to be the year to embrace it. Investors who make use of robo advisors have the piece of mind that, with the help of data analytics and AI technology, they have the best investment strategy. While these advisors seem to be a foolproof option, there is some benefit to having that human element in place, especially when market shifts occur for emotional reasons. While effective, technology is no replacement. Instead, it helps to diversify the portfolio and investment opportunities so you do not have all eggs in one basket.
Commodities Are Heating Up
It’s only thanks to the advancements of technology that, in the year 2019, we can classify our commodities into physical and virtual. On the physical side, investors who like investing in the tangible will find that commodity trading is gaining quite a bit of press. According to Money Metals Exchange, commodities such as silver are receiving a fair bit of attention. When it comes to retaining value, precious metals are known to be a great addition to an investment portfolio.
Those who prefer opting for a virtual commodity will cryptocurrencies to fill the gap. While often referred to as currency, crypto more accurately displays the characteristics of a commodity. For 2019, investors seem to be reigning in their exploration of the lesser known cryptocurrencies and are focusing on the main ones such as Bitcoin, Ethereum, and Litecoin. This comes after the sinking of a number of cryptocurrency investments.
The Year To Start Trading
Dabbling on the forex markets seemed to be relegated to traders with high blood pressure and those who make the daily commute to Wall Street. But technology brings investors closer to products they may previously have had to go through a brick and mortar institution. One of the fastest growing investment platforms is online forex trading, and this form of trading bridges the gap for young and old. Platforms are not only accessible through desktops, but mobile devices as well. Forex signals and charts are a quick search away and those who have to endure a long commute can check out their standings without having to wait to see a newspaper.
This is the year of the diversified portfolio with quite a big dash of technology mixed in. For traders, the biggest factors still remain such as time to invest, their appetite for risk, and the use of surplus funds only.