The COVID-19 crisis caused a real storm in the financial markets at the beginning of 2020, causing uncertainty to settle in investors and investment alternatives risky. However, in 2021, the situation has completely changed, and analysts are optimistic about the future evolution of the world economy.
Currently, there are numerous investment alternatives for all types of profiles. Therefore, below, we leave you the best instruments, assets and financial products on where it is best to invest today.
Table of Contents
Fixed-term deposits
It is one of the most interesting options for the most conservative investors. The deposits remain today, the product of more contracted savings, although the return they offer is quite poor.
However, the security they offer, being covered by the Deposit Guarantee Fund, and the possibility of accessing other much more attractive options at the European level are compelling reasons to bet on this product in 2021.
Variable income
Nobody knows what will happen in the next few months in the stock market, but the last year has been especially profitable. Without going any further, some U.S. indices such as the S&P 500 have doubled their price from the lowest level of March 2020, in the middle of the first epidemic wave in the world.
And while past returns do not guarantee future returns, the economic growth forecast by the main international organizations and the future prospects have given some optimism to financial markets, making equities an interesting alternative.
Real-estate market
The real estate market continues to be one of the most attractive sectors to invest in, even after the pandemic. In fact, according to the experts consulted by Idealista in the article published on July 19, 2021, it is now more worth buying a home than renting it, and it will be more profitable in the long term to buy in the near future than in 2022 or 2023.
To this is added an additional factor: the Euribor has been negative for more than five years, and nothing suggests that the situation will turn 180 degrees in the near future. Mortgages are now cheaper than ever, and the conditions for accessing them remain quite flexible.
Raw Materials
Raw materials also have a place on this list. And it is that investing in commodities can be an optimal way to diversify an investment portfolio, both in the long term and as an antidote to unstable or bearish equity markets.
Among them, gold stands out, the mineral par excellence, which is always a good asset to introduce into portfolios. But also oil, silver, copper and even water.
Cryptocurrencies
It is one of the latest financial assets invited to the exciting world of investing. Cryptocurrencies in general and Bitcoin, in particular, have achieved unexpected fame that has driven its price to levels unimaginable a few years ago.
Of course, its high volatility is its weakest point, especially for investors with a greater aversion to risk. Experts point out that this type of asset may follow the upward path observed in recent years, although it is likely with volatility similar to the current one.
Index funds and ETFs
If there is a financial instrument that has gained market share in recent years, it has been none other than index mutual funds and ETFs. In the U.S, the offer is increasing, and the conditions are more viable for minority investors. This, together with the popularization of this instrument, has made passive management have a niche in the financial industry.
Its low commissions, the possibility of diversifying the portfolio worldwide, ease of access and its liquidity are the characteristics most valued by investors. That is why they are increasingly present in investment trends.
Roboadvisors
Like index funds, automated investment managers, better known as roboadvisors, have also become quite popular in recent years, thanks to their simplicity and low costs.
Many investors with little financial knowledge have trusted their money in these instruments, investing in a variety of mutual funds, with which they share their characteristics and other instruments such as ETFs.
Conclusions on where to invest in 2022
As we have seen, there are different assets in which an investor can place their capital with different risk profiles and time horizons.
In any case, in 2022 the same advice is used as always: diversify the portfolio and invest in those assets that allow us to sleep peacefully.
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