The new year is just around the corner, and the question of the right investments is more pressing than ever. Now is the perfect time to explore new strategies and opportunities for profit. While exchanging bitcoins is straightforward, working for the long term is essential: explore industries, sectors, and means for profitable investments.
Forecasting results is possible if you carefully study the characteristics of investment areas. Here is a list of investments that can bring excellent returns in 2019.
ETFs (Exchange-Traded Funds)
Exchange-Traded Funds (ETFs) have gained popularity in recent years, coming to us from America. Essentially, they are similar to regular mutual funds, but the main difference is that ETF «shares» (stocks) can be traded on the stock exchange, just like regular stocks or futures. Another advantage is that while the Net Asset Value (NAV) of a mutual fund is calculated once a day, the price of ETFs changes regularly during trading hours.
ETFs are portfolios of securities or assets (commodities, goods, currencies) that often replicate a specific stock market index. Thus, by making a financial transaction, a person buys or sells an entire basket of assets. Their structure is based on holding numerous deposits (capital), representing mini-portfolios.
Each share is oriented towards a specific segment and aims for future growth. Thanks to this, even beginners can profit from investments.
In 2019, ETFs in the utility sector are expected to have significant prospects. For example, Utilities Select Sector SPDR ETF (XLU) invests in companies related to standard sources of energy such as natural gas and electricity.
REITs (Real Estate Investment Trusts)
Real estate investments have always been considered one of the most stable and profitable. Today, there is an opportunity to earn from real estate without owning properties!
Real Estate Investment Trusts (REITs) are gaining popularity among advanced investors. These are companies that, through collective investments, acquire real estate or mortgage-backed securities (bonds, mortgages). Essentially, REITs are trust funds, and the fund's assets are traded on the stock exchange alongside other securities.
How does an investor make a profit? Their income depends equally on the growth of share value and property rent. Profits are paid to shareholders in the form of dividends.
The number of tenants is increasing every month, and according to forecasts, the residential real estate market will break all records in 2019. As an example, we can mention the real estate investment trust UDR, Inc. Currently, they own 50,000 residential units. Their strategy is simple: they build or acquire real estate in areas with housing shortages. The UDR, Inc. stock price continues to grow steadily, undoubtedly benefiting investors.
Elderly Care Industry
The world's population is aging. It is a natural process, but WHO data is alarming: by 2050, the number of people over 60 will increase to 2 billion. Based on this data, investors should focus on companies that cater to this age group. Health care is the most significant expense for elderly people. This means that global investors will take a new direction in healthcare. Pharmaceutical and consumer assets of well-known companies such as Johnson & Johnson, Merck, Pfizer, and United Health Group will actively develop. Besides the healthcare sector, investors should also pay attention to the elderly care industry, offering a broad field for profitable investments.
