In this section of Investing Guides, we look at particular markets, sectors, industries and even theme’s to invest in.
Articles about Investing in X
It can be hard to figure out what to invest in. Investing in something should mean you are motivated by a larger goal. This can be increasing your wealth, supporting your local company & economy, ethical beliefs and/or a sustainable future.
Deciding your motivation
Once you have decided on your primary goal, you can priortize the rest based on your next most important motivator. This way, when investing in an instrument, you tick off your goals and can be 100% behind your decisions.
Join us on this journey and, we hope, you will find your next investment interest. Reach out to us if you are missing anything we might write about next!
Investing in commodities
It can prove smart to invest in commodities if you believe a resource is currently undervalued or could become more scarce. As both should lead to a price increase in the near future.
However, depending on the commodity, it can also help fight inflation. As prices rise, certain commodities increase too. The commodity most labelled to counter inflation is gold. Hence, investing in gold is a possibility and is done regularly by many investors.
Investing in industries & sectors to diversify
Whenever you consider investing in the next thing, it’s good to understand what GICS sector it belongs to. This can help shape your diversification strategy or help you capture a potential overexposure early on.
Overexposure is when you have invested too heavily in one particular industry, country, commodity, currency or otherwise. This leads to a high dependency on the instrument(s).
Let’s say you had only invested in .com websites prior to the .com bubble, then you might have lost nearly all your money, as you had no other investments that could counteract that loss.
Investing in ethical & sustainable beliefs
A trend & powerful way to make an impact using your finance is investing in socially responsible companies. The concept of SRI & ESG is relatively new but has quickly gained traction.
Aside from a sense of responsibility and justification, it can still be advantageous to one’s wallet. One example of this would be to only support clean energy through ETFs. If energy is generated by water, wind or sun, it’s considered renewable.
The world is your oister
Investing in any type of product should follow your personal goals. This webpage has plenty of inspirational articles and Investing Guides is here to support you.
Yet if you do not stand behind your investments on a personal level, you can fall victim to emotional investing. This is when you start making choices based on emotions only and forego any rationality involved.
If you are sitting there believing this won’t happen to you, then trust us, it might. It is human to be led by your emotions.
Consider this example. You have chosen to invest in oil. You do not believe this is a particularly good resource, but it seemed the offer the biggest return. A week later an oil crisis occurs and you see oil drop by 40%.
At this moment, your mind will race and question your initial investment. Without proper belief in oil, you will most likely end up selling and take a loss out of fear. However, if you had invested with a strong belief, you would have held your ground and most likely seen oil recover over time.