Top investments: What to buy right now.

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As we likely enter the final phase of the market cycle, now may be the perfect time to plan for the future. The recent pullback allows investors to capitalize on potential growth with top investment opportunities.

To help you identify some great investment opportunities across different asset classes, we’ve compiled a list of 10 ideas that we believe offer strong risk/reward profiles.

#1 iShares MSCI Emerging Markets ETF

Investors looking to diversify their portfolio and gain exposure to various markets and industries can consider Exchange-Traded Funds (ETFs). With over 8,754 ETFs globally in 2022, choosing the right one can be challenging.

One top investing trend for 2024 top Investments is emerging markets, including China, Brazil, India, Russia, and South Africa. Although the US markets provide high liquidity, investors are motivated to look for high-return opportunities outside the US, particularly in Asia. Emerging markets are expected to outperform US equities as the US dollar winds down.

We recommend investing in the iShares MSCI Emerging Markets ETF (Ticker: EEM) for broad coverage of large- and mid-cap emerging markets companies, providing diversification and exposure to the entire trend rather than picking individual stocks or countries.

#2 American Express (Blue-chip Stock)

Blue-chip stocks are stocks of established, well-known companies with a long track record of success. Although there is no official list of blue chip stocks, investors label the 30 members of the Dow Jones Industrial Average (DJIA) indices as elite.

American Express Company (Ticker: AXP) is one of the world’s most powerful credit card companies and a DJIA member.

Despite weaker-than-expected fourth-quarter results in 2022, the company issued strong guidance and a dividend hike. Higher-income customers with high credit scores continue spending despite inflation, which has caused Wall Street analysts to upgrade the stock with higher price targets.

American Express makes up 7.5% of Warren Buffet’s portfolio; one of the most successful investors and one of the top 10 richest people in the world.

We believe that American Express currently offers the most favorable risk/reward investment opportunity among all blue-chip stocks.

#3 AGNC Investment Corp (REIT)

Real Estate Investment Trusts (REITs) provide a promising way to invest in real estate without the hassle of owning physical property.

With the Federal Reserve’s efforts to fight inflation through rate hikes, the residential real estate market may experience turbulence. Unlike the commercial real estate market, however, the residential real estate market remains strong.

We have identified AGNC Investment Corp (Ticker: AGNC) as a REIT company that invests in agency residential mortgage-backed securities, offering a high dividend yield of 13%.

This makes AGNC a compelling investment opportunity for those looking to gain exposure to the real estate market while earning a healthy return.

#4 Top Investment Newmont Corporation (Gold)

Gold is a popular investment option for hedging against inflation and economic uncertainty. There are several ways to invest in gold, including:

  1. Physical gold: Investors can buy physical gold through bullion, coins, or bars. This can be stored at home or in a secure storage facility.
  2. Gold mining stocks: Investors can buy stocks of companies that mine gold. These companies may benefit from higher gold prices and increased demand for gold.
  3. Gold ETFs: Investors can invest in an ETF that tracks the price of gold. This provides exposure to the gold market without owning physical gold.

One mining company that we see as an attractive candidate to benefit from a higher gold price is Newmont Corporation (Ticker: NEM).

With a dividend yield of around 5%, Newmont offers the highest yield among its peers in the precious commodities coverage, which is considerably higher than the average yield of 3%.

#5 iShares 20 Plus Year Treasury Bond ETF (Bonds)

Investing in bonds can be a wise decision to diversify your portfolio while generating a consistent income stream through interest payments.

It’s important to understand that bond prices and interest rates tend to move in opposite directions. We are experiencing a cycle of increasing interest rates to combat inflation in the current economic climate.

However, we may be approaching the end of this cycle as the economy slows down and potentially enters a recession. This means that interest rates are likely to fall again in the future to stimulate the economy. This would mean that bonds would rise in value.

Consequently, we picked the iShares 20 Plus Year Treasury Bond ETF (Ticker: TLT) that invests primarily in U.S. government bonds with remaining maturities greater than 20 years.

#6 Litecoin (Crypto)

Cryptocurrencies have become increasingly popular due to their blockchain technology, which provides decentralized and secure transactions, and their potential for high returns.

However, the market is highly volatile and subject to regulatory changes, which can significantly impact its value. The crypto market has experienced a significant sell-off due to increased regulatory scrutiny and concerns over inflation, with many cryptocurrencies losing value.

As the end of the rate hike cycle approaches, the market has shown signs of recovery, with Bitcoin typically generating decent returns. However, altcoins usually tend to outperform Bitcoin, and with over 22,000 options in the market, it can be challenging to choose the right investment.

We recommend Litecoin (Ticker: LTC), a top-20 coin that offers a fast and efficient alternative to Bitcoin with lower transaction fees. Among all cryptos, we believe Litecoin provides the most favorable risk/reward investment opportunity currently available.

#7 Teucrium Corn Fund (Commodities)

Commodities offer an effective means of diversifying your investment portfolio and taking advantage of price volatility.

In 2022, a conflict in Europe’s breadbasket sparked supply and pricing concerns that caused a stir in the global commodity market, driving agricultural commodities to their highest prices since 2012. For example, Roughly 14%-16% of the world’s corn exports come from Ukraine.

As we advance, the trajectory of agricultural prices will be determined by factors such as extreme weather and energy costs.

If you’re looking to invest in commodities, the corn market as a component of the agricultural sector appears to be the most attractive now.

The Teucrium Corn Fund (Ticker: CORN) provides a simple way to gain exposure to corn futures prices via your brokerage account.

#8 Invesco Small Cap Value Fund (Mutual Fund)

Mutual funds can be a popular investment option for investors looking to diversify their portfolios while minimizing risk.

Unlike passively managed funds, mutual funds are actively managed to outperform benchmark indices. A small-cap value fund can be a good choice for investors seeking exposure to discounted stocks across sectors and companies.

After conducting research to identify the mutual fund with the most lucrative performance in 2022, we found the Invesco Small Cap Value Fund (Ticker: VSCAX) to be a top performer. This fund has shown promising results with a three-year annualized return of 18.7%. Jonathan Mueller, one of the fund managers since 2010, has been instrumental in achieving these returns.

#9 iShares Silver Trust (Options)

Options can be useful for hedging against market volatility and taking advantage of price movements in the underlying asset. However, it is important to understand the risks and potential rewards of options trading before engaging in it.

Investors may find the outlook for precious metals promising in 2024, as many Wall Street firms predict a significant devaluation of the US Dollar in response to an upcoming Federal Reserve policy shift. This can potentially boost the prices of precious metals such as gold and silver, as a weaker US Dollar often correlates with higher commodity prices.

When the US dollar weakens, it boosts metal prices, such as silver. According to an analyst survey, Silver’s general price target consensus is $25, with the highest upside target at $30.

Investors interested in gaining exposure to silver may consider the iShares Silver Trust ETF (Ticker: SLV) as a potential investment option.

We picked the February 24, 2024 Call options with a $20 strike price (near the money).

#10 Silver Coins (Precious Metals)

Investing in precious metals like gold, silver, and platinum can be a good approach to diversifying your portfolio and guarding against inflation. Due to an impending change in interest rate policy, inflation, and geopolitical events like the Ukrainian War, investors may turn to “safe haven assets” like precious metals. As such, the metal industry could be a profitable investment strategy in 2024.

Silver, in particular, is a metal that may be more resilient than gold due to its higher volatility and potential market shortages. Having physical silver in your possession, either as coins or bullion, can be a psychologically and emotionally rewarding approach to investing. Silver is also considered a real store of value and provides a sense of ownership and usability.

If the price of silver increases, you can earn from silver coins and bullion. You can purchase silver from nearby merchants or online merchants like APMEX.

Conclusion

When investing, cherry-pick your favorite opportunities that we have highlighted for you that meet your financial situation, risk tolerance, and investment goals.

Consider traditional investments like stocks, bonds, and real estate for potential long-term growth, commodities like gold and oil to hedge against inflation and market volatility, and cryptocurrencies like Bitcoin and Ethereum for high potential returns (but high volatility, too).

Mutual funds and ETFs offer diversification and convenience, while options require expertise and may involve high risks.

Remember to research and consult a financial advisor before making any investment decisions.

Disclaimer

This article is for educational purposes only. We are no financial advisors. The information provided from SmartOptions is for informational purposes only. It should not be considered legal or financial advice. You should consult with a financial advisor or other professional to find out what may be best for your individual needs and risk tolerance.

Please do your own research and never let anyone trade your account for you. We do not support or advertise Fund Management in any kind of manner. We solely review signal providers, their work/analysis/provided education. Please read this disclaimer and leave the website if you disagree with it.

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Oliver Reiche
Oliver Reiche
Oliver is a market strategist, portfolio manager, and entrepreneur with more than 10y of finance experience across Europe and the US. He is best known for his contributions to popular finance blogs such as on Seeking Alpha, Capitol Trades, and other social media channels. In addition to that, he is also running his own finance blog "TradeWiserMarkets" and has nearly 1,000 Twitter followers.