Investment options go far beyond just stocks. Here's the what, why, when, and how of choosing the best investments for you in 2023. Will the 2023 investment picture look like 2022? If not, you'll need to be positioned in the best long-term investments for 2023.
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Diversification: Low-risk investments are a great option for conservative investors who want to protect their money from potential losses while still earning decent returns. Consider diversifying your portfolio with bonds, real estate investment trusts (REITs), and index funds.
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Long-Term Approach: For some investors, the time frame for holding stocks might be days, weeks, or months. But smart investors generally look toward the long term. Consider long-term investments like blue-chip stocks, growth stocks, and dividend-paying stocks.
Global Opportunities: China is the world's No. 2 economy and home to dozens of companies that trade in the U.S. Right now, Trip.com (NASDAQ:TCOM) and Tesla (NASDAQ:TSLA) rival BYD present promising investment opportunities.
Balanced risk and Returns: If you're looking to grow your wealth through investing, you can opt for lower-risk investments that pay a modest return or take on higher-risk options for potentially higher returns. Consider a mix of both, such as balanced mutual funds or a well-diversified portfolio.
Starting Small: While $1000 might not seem like a large sum, it can go a long way when you invest it while keeping your goals and risk tolerance in mind. Consider fractional investing, which allows you to buy portions of stocks or exchange-traded funds (ETFs) with smaller amounts of money.
Safer Investments: In the current economy, it's wise to consider safer investments that offer the potential for higher returns. Explore options like treasury bonds, blue-chip stocks, municipal bonds, and high-yield savings accounts.
Broad Market Exposure: There are literally thousands of publicly traded companies you can invest in, not to mention the many exchange-traded funds (ETFs) and index funds. Consider broad market ETFs or index funds to gain exposure to a wide range of stocks.
