2023 has seen positive price action across the board, with Bitcoin and most altcoins rallying hard. For investors looking to buy into long-term crypto investments, this is an excellent opportunity. This trend is likely to continue in 2023. Of course, there's more to choosing an investment than upside potential. You also have to consider risk factors.
That's why it's important to diversify your portfolio. Here are 8 of the best long-term investments for 2023.
-
Growth Stocks – Growth stocks are stocks of companies that are expected to grow faster than the market average. These companies usually have high P/E ratios and are usually riskier investments. Examples of growth stocks include tech companies like Amazon and Apple.
Value Stocks – Value stocks are stocks of companies that are undervalued and have good fundamentals. These stocks usually have low P/E ratios and are usually less risky investments. Examples of value stocks include Microsoft and Johnson & Johnson.
Dividend Stocks – Dividend stocks are stocks of companies that pay out regular dividends to shareholders. These stocks are usually less risky investments and can provide a steady stream of income. Examples of dividend stocks include Exxon Mobil and AT&T.
ETFs – Exchange-traded funds are a type of investment that tracks a certain index or sector. These investments are usually less risky investments as they are well-diversified. Examples of ETFs include the S&P 500 ETF and the Nasdaq 100 ETF.
Stock Mutual Funds – Stock mutual funds are a type of investment that pools the money of many investors to buy a variety of stocks. These investments are usually less risky investments and can provide returns that are better than the market average. Examples of stock mutual funds include Fidelity's Contrafund and Vanguard's Total Stock Market Index Fund.
Target Date Funds – Target date funds are a type of investment that is designed to provide returns for investors over a certain time frame. These investments are usually less risky investments and are designed to provide returns that are better than the market average over time. Examples of target date funds include Vanguard's Target Retirement Funds and Fidelity's Freedom Funds.
Real Estate Investment Trusts (REITs) – REITs are a type of investment that pools the money of many investors to buy a variety of real estate assets. These investments are usually less risky investments and can provide returns that are better than the market average. Examples of REITs include Blackstone REIT and Vanguard REIT ETF.
Gold – Historically, the precious yellow metal has proven to be a safe-haven Investment during recessions and one of the best hedges against inflation. Gold is often used as a hedge against stock market volatility and can provide returns that are better than the market average.
