The first half of the year was one the markets would like to forget. The Standard & Poor’s 500 stocks benchmark fell about 21% in the first six months of 2022, the most of any first half of any year since 1970, while the tech heavy NASDAQ dropped nearly 30%. Bonds had their biggest selloff in four decades, while cryptocurrencies were routed.
Meanwhile, the economic indicators are not good. Inflation is running at a 40-year high of 9.1%, and there are fears of a recession. The jobs market is not looking as robust as it did earlier in the year. And the war in Ukraine drags on.
But for some, the bearish market is an opportunity for intrepid investors. 24/7 Wall St. created a list of 20 of the most common investment types, as well as explanations of common successful investment strategies based on the report 10 Common Types of Investments and How They Work, produced by financial technology company SmartAsset.
If you’re planning to dip your toe in the turbulent equity waters, you can either start your own brokerage account or hire a financial advisor. (Here are 5 tips to choosing the best wealth management firm for you.)
The first option gets you investing quickly, with the ability to buy stock, bonds, mutual funds, and more. But the decisions you make are yours alone. With the second option, the financial advisor can help you figure out an overall financial strategy and prepare you for retirement. (Here is what it costs to retire comfortably in every state.)
Investing can be an intimidating endeavor. There are many types of investments, and all require some level of experience and research. Each type of investment has a different level of risk and reward, offering various options. Investors need to determine an asset allocation that lines up with their financial goals, and weigh each type of investment and how it fits into this allocation.
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