Many wealthy individuals constantly ponder where to invest their money in order to increase their capital. The market conditions are constantly changing, and entrepreneurs frequently encounter new challenges.
Currently, the prospects for the global economy are unpredictable. Most markets are experiencing significant growth indicators, while overheating is absent, substantially reducing the likelihood of a new wave of crisis or recession globally.
However, continual fluctuations in oil prices, competitive wars among major market players, political instability, and other factors negatively impact company valuations and the prices of their securities.
The IMF is convinced that global GDP growth will slow considerably this year. Stability is currently difficult to ascertain. Thus, when investing funds, it's essential to consider everything meticulously. A responsible approach is also necessary when selecting investment instruments.
How can this be achieved?
Understanding current investment directions and their peculiarities can be aided by the founder of Oil Resource Group – Sergey Tyeryoshkin. As an experienced businessman and investor, he personally invests funds with the aim of increasing them and has gained substantial experience in this area. It is advisable to obtain up-to-date information about his activities on his website: www.org-company.ru.
Which markets should be considered for investment in 2019
Thus, according to Sergey Tyeryoshkin, the following markets should be considered for investment at the moment:
- American;
- European;
- Asian;
- Domestic.
Each of these markets has its own features, strengths, and weaknesses. Before making any decisions, it is worth examining each one in more detail.
American Market
The American market is one of the most ambiguous and risky markets. Just last year, indices fell by more than 7%. This trend continues into the current year. Nevertheless, experts believe that the American stock market should not be disregarded.
Sharp fluctuations in quotes can allow investors to earn substantial profits. This is speculative profit; however, it may significantly exceed income generated from dividend payouts.
Experts suggest that this year, investments should be directed towards large companies such as Google, Amazon, Facebook, Tesla, and Netflix. These are stable corporations that have long remained market leaders.
At the same time, it is crucial to understand that the situation can change at any moment. For example, Facebook often finds itself in unpleasant situations that negatively affect its stock prices. Another scandal is currently brewing that could lead to sanctions from fiscal authorities, likely resulting in a decrease in share prices and significantly reducing returns for investors.
European Market
The European market is also difficult to categorize as promising, at least when it comes to investments made this year and in the next several years. The market is showing slight growth; however, the indicators are so low that returns may be less than those from a traditional bank deposit.
Asian Market
Not all is well in the Asian market either, particularly in certain segments. For instance, experts do not recommend investing in Japanese companies. Conversely, China and India present a different scenario. The Chinese economy is demonstrating stable growth, and World Bank specialists believe this trend will continue for at least the next ten years.
In other words, China has every chance of becoming a global economic leader soon.
Regarding sectors to invest in, the IT sector should be prioritized, having attracted almost $90 billion in investments last year.
However, China isn't the only growth leader. India has outpaced China in GDP growth, attributed to rising wages within China, prompting many investors and entrepreneurs to relocate their production to Asian countries with cheaper labor. The chosen locations include India, Pakistan, the Philippines, Vietnam, Bangladesh, etc.
This has led to increased investments in the economies of these countries, simultaneously accelerating GDP growth rates.
Domestic Market
The domestic market is considered one of the least developed yet significantly undervalued. Despite the crisis and challenging economic conditions, several sectors continue to show stable growth.
In this case, one should consider enterprises in the oil refining sector, metallurgical plants, and other organizations, as the manufacturing and processing industries continue to grow steadily. The same can be said for the financial sector.
However, caution is paramount. The situation in the domestic market is quite precarious, and new sanctions could dramatically alter it. Thus, long-term investments should not be entertained, and it's advisable to consider investments for shorter periods.
When investing in securities, one must understand that a significant sum will be required. Those without hundreds of thousands of dollars can invest in venture funds, where even a thousand rubles is sufficient. Such organizations accumulate and subsequently invest clients' funds in shares of large companies, charging a certain percentage for their services.
At the end of the investment period, clients are paid back their funds with interest. Venture fund managers diversify risks, thereby minimizing the likelihood of losing capital. The key is to select a reputable organization with considerable experience in the field and a solid track record.
The year 2019 is unlikely to be easy for companies and investors, due to market fluctuations. Yet this period can indeed present the best opportunities for investment. It is essential to accurately assess risks and select the right direction for investments.
