Where is the best place to invest? What to invest in?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2024-01-09 14:06

The troubled economic situation in our country, which worsened by the end of 2014, allows us to conclude that the crisis will intensify in the new year, 2015. This forecast is supported by the opinions of both Russian and Western experts.

As part of the accelerated fall of the national currency by the end of last year, many wondered about where to invest money in Russia with the maximum possible benefit, or how to keep existing savings when banks close in batches.

Main causes of the Russian economic crisis

There are at least five of them:

1. The critical situation in Ukraine, which led to a decrease in a number of economic indicators, and growing corruption are causing an accelerated outflow of capital (according to many experts, this will continue in 2015).
2. Sanctions imposed by the Eurozone, Australia, USA, Canada and other countries.
3. Decrease in Russia's competitiveness due to the outflow of foreign investmentdue to the aforementioned sanctions.
4. Direct dependence on oil prices.
5. Falling national currency and inflation of interest rates of the Central Bank due to capital flight.

Current forecasts for the development of the Russian economy in relation to 2015

The above reasons for the economic crisis in our country evoke very disappointing forecasts for its further development, which is why the question of where it is more profitable to invest this year is becoming more and more urgent. The accelerated fall of the national currency at the end of last year makes even well-known leading economists think.

Forecast by V. Osakovsky (specialist at the American bank Merrill Lynch): the Russian economy will continue to be in recession until the 2nd quarter of 2015. He predicts zero growth of the ruble this year. Inflation, in his opinion, will rise to the level of 8% by the 1st quarter of 2015. In this regard, the rates of the Central Bank will increase in the 4th quarter. The result of all this is a decrease in the number of credit programs and a drop in the (real) income of the population. However, in the second half of this year, there will be a strengthening of economic growth trends due to increased government spending, in particular on the construction of the Crimean bridge and the construction of a gas pipeline to China, as well as a reduction in imports. The further outcome depends on whether there will be a de-escalation of the Ukrainian crisis or its resumption.

Forecast by D. Nell and A. Slyusarchuk (economists of the large American banking holding Morgan Stanley): the economic downturn in 2015 will0.5%, reducing investment, consumption, accelerating inflation. This will lead to an increase in the rates of the Central Bank until the second half of this year. They also note the dependence of the further development of the economy on the outcome of the crisis in Ukraine. If the escalation continues, rates will rise and Russia will slip into recession by up to 1.5%.

Forecast of the Ministry of Economic Development: economic growth this year by 1%.

As for Western financial and economic institutions, they assess the further development of the economic situation in Russia differently.

FocusEconomics forecast: economic growth in 2015 by 1%. And the financial and economic news agency Bloomberg suggests that this year there will be economic growth of 1.15%.

Danske Bank, BNP Paribas and Swedbank forecast: two-year recession with particular burden for the current year (0.6-3% decline).

Where can you invest in the current economic situation?

Main investment areas:

1. Foreign exchange market (impressive risk of inflation even when holding cash). If you still want to invest in this investment instrument, then you should choose the most stable currency (euro, Swiss franc, dollar). Investing in the ruble is now more than risky.
2. You can invest in real estate. Investing in commercial facilities, housing, construction has always, so to speak, been in demand. However, it should be remembered that during a crisis, real estate can easily fall in price at leastby 50%. Therefore, it is more efficient to invest in real estate in still developing cities.



3. Deposits to save and increase money. Their first appointment is more in demand, since investing money at interest will be inefficient due to the minimum rates. In case of an unfavorable outcome, they will not cover the losses. However, if you still decide to invest money at interest, then you should follow the following recommendations:

   ● you need to trust only reliable banks;

   ● it is better to choose deposits that provide the possibility of partial or complete withdrawal of funds without losing accrued interest;● It is worth investing in several banking institutions at once, and each deposit must be up to 700 thousand rubles. due to the fact that the insurance agency guarantees the safety of the amount not exceeding 700 thousand rubles.

   

4. Antiques, art objects. This is recognized as the most reliable tool for investing in times of crisis. If there is any doubt as to whether it is worth investing money here, then you can reassure yourself that this kind of investment is considered one of the most profitable and reliable investment instruments. This deposit will protect the funds and significantly increase them.



5. Precious metals. This is a rather risky option regarding where to invest money (investment), because the price of gold always fluctuates (as it currently does). The same is the case with silver. Palladium is considered the most stable.
6. Mutual funds (very risky investment instrument). It is worth recalling the situation with the collapse of the stock markets (2008-2009). Many believe that this situation may repeat itself at the present time, so this is not an option where it is better to invest money.
7. Own business. Experts advise to refrain from this kind of investment in the current crisis situation. If, nevertheless, a decision has been made regarding what to invest in, and this is your own business, then you should focus on essential items and services (provided that the segment is not overloaded).
8. Stocks (requires special knowledge to manage an existing investment portfolio). In an unstable economic situation in the country, they can bring significant income if properly managed.
9. Exchange speculation. This is a good option as to where it is better to invest money (especially during a crisis, when quotes fluctuate quite impressively). However, at this time it is better not to start learning the trading process, but rather to trust the professionals.

Thus, whether to invest in real estate, or in antiques, or at interest, or elsewhere is a decision that requires serious analysis on criteria such as reliability, profitability, riskiness, etc. It is always worth proceeding from the current economic state of the country.

Investing in stocks

This is the most demanded investment tool today. Its popularity is determineda number of exceptional advantages, which is why it is in the lead among the rest of the investment toolkit. However, to ensure maximum efficiency from securities, you need to have a certain amount of knowledge regarding the investment process.

Trading stocks is a fairly simple process due to the fact that a significant amount of data is stored electronically. If the required knowledge is not available, then it is worth entrusting trading to a professional trader. He organizes auctions on favorable terms for a predetermined commission.

Advantages of the considered investment instrument

Investing in stocks is profitable for the following reasons:

• annual share return is 100%;
• The price of a share is set based on the profit of the company behind it, this profit is a derivative of inflation (the art of company managers directly brings additional profit to the shareholder).

Disadvantages of this investment tool

I consider investing money in stocks to be an inappropriate decision, because:

• they have the property of volatility (under the influence of the market, the value of shares can fall sharply);
• A shareholder will be able to make a profit at the very last turn (first, payments are made to suppliers, employees, creditors, etc.).

Education as an investment option

Such an investment in the future will bear fruit as a new position and, accordingly, a good salaryfees. And in the current crisis situation, it would be useful to think about a second higher education or advanced training or retraining courses.

Education is a good place to invest money, especially since this kind of investment will provide a number of advantages in the labor market. In addition, during the crisis, it will also be possible to save money on education (most universities provide discounts in order to attract customers).

However, one should not invest in education if there is doubt about lack of time or patience to complete the studies.

Travel as an investment option

This is considered by many to be the best way to spend money. For psychological satisfaction, along with purchases, it is also necessary to invest in good impressions. In this regard, rest must be complete, as it may affect the quality of further work.

However, travel is not a very good option for what to invest in if they are credit or recent. It is also worth planning a trip on your own, due to the fact that cases of bankruptcy of travel agencies have recently become more frequent.

Investing in a startup

First of all, it is worth telling what a startup is. These are innovative companies that offer fundamentally new technologies. The introduction of new and unknown technologies into life, bringing them to mass consumption is a rather difficult task, the favorable resolution of which can bring more than one hundred percentarrived. That is why this option is recognized as favorable regarding where it is more profitable to invest money.

To make money on this type of investment, you need to be sure that such components as the goal, team, idea and plan are closely interconnected, and the company is clearly aware of its mission and how to realize it (the main component success).

There are enough examples of start-ups turning from zero into billion dollar holdings, while enriching their investors at all stages of development. Currently, there are dedicated startup exchanges that bring companies and investors together.

"Startup Exchange" - a site where company data, their offers, business plans are registered and the amount required for promotion is indicated. Interested investors contact the company and subsequently invest in its offering. One startup can have more than one investor.

Pros and cons of this type of investment

This is a good option as to where it is more profitable to invest money, since even in a situation where, for example, ten startups out of eleven burn out, the latter is able to recoup the losses incurred due to a yield of several thousand percent.

However, a startup is always a risk and an unknown area. Quite often, they die not because of a bad idea, but because of an illiterate organization and incompetence of the company's management.

Despite the disadvantages, this is still recognized as a good solution to the question of where to invest money (reviews from grateful investors confirm this). In addition, many are guided by folk wisdom: “risk is a noble cause.”

Investment service PAMM account

Literally translated as profit sharing percentage module. As an investment service, this is a kind of trust management that allows the investor to make a profit on the Forex currency market, attracting professional traders for this.

Its principle of operation: investors (any person who has invested in PAMM accounts) make deposits to a common account, with which their chosen manager (trader) conducts appropriate manipulations. As a result, the resulting profit (loss) is distributed based on the investor's share in the total account.

Security is ensured by blocking the possibility of withdrawing investors' funds by their trader. The investor, in turn, can withdraw the funds due to him at any time convenient for him.

A mandatory condition for the manager is to deposit his own funds to the PAMM account. This is due to the division of risks (a trader, making transactions, also risks his own funds). From each profit received, he is en titled to remuneration, the amount of which is assigned in the agreement (20-50%).

In order to protect investment funds from their complete loss during trading on PAMM accounts, it is possible to set a loss limit to a certain level. It is also realistic to stick to a zero-risk strategy.

Advantages of a PAMM account

They look like this:

• more significant than a bank depositpercentage of profit (based on the manager's professional skills, up to 100%);
• possibility of earning income in the shortest possible time (in a week);
• the ability to choose a manager according to your requirements;
• acceptable level of minimum investment (from $100);
• possibility of prompt withdrawal of funds on demand (within a week);
• free schedule;
• 24/7 investment monitoring;
• comfortable way to invest (remotely);
• investment management from anywhere with Internet access;
• no need to take training to play the foreign exchange market;
• withdraw funds in any convenient way (bank account, Yandex. Money, WebMoney, etc.).

Guidelines for the selection of trustees

The values of the main parameters of the PAMM account are as follows:

1. Amount under management (an indicator of other investors' confidence in the general manager).
2. Manager's capital (the trader risks his own capital too).
3. Age (due to the fact that the accrual of the corresponding interest on the amount occurs every week, it is also indicated in weeks). It is recommended to choose PAMM accounts that are less than twelve weeks old. The longer the account works, the easier it is to track the results of trading, the professionalism of the trader, etc.
4. Minimum investment amount (does not reflect the degree of success of the trader; allows you to choose the right PAMM account).
5. Secondary signs of reliability (display of PAMM-accounts through various coefficients, their ratios, as well as formulas for determining the reliability of investments in these accounts based on a post-analysis of the trader's work).

So, the decision as to where it is more profitable to invest money is made depending on the current state of the economy and what the investor's goal is.