Market volatility is part and parcel when it comes to investing, saving, and building retirement wealth. Investors know that market uncertainty breeds growth potential, but it also threatens to undo all the hard work you’ve put in to create the level of wealth that you currently enjoy. Net worth is a finicky thing that relies on a constant care for your assets and the allocation of savings assets in a mobile and constantly growing portfolio. Protecting yourself, especially as the market continues to see wild volatility in the wake of the coronavirus outbreak during the current year is a natural and essential part of the life of an investor. If you’re an accredited investor who is looking to protect yourself and your total assets in an uncertain market, keep reading for some information on how to do so.
Learn the Trade
Investors of all stripes must start somewhere. Often times, this is the stock market, where regulators make for a stable trading environment with a reasonable expectation for investors. Stocks provide a springboard for new investors of any income level to learn the rules of the game and begin to anticipate market movers within a somewhat stable environment. Generally speaking, the market rises at a trending 7-9% over the long term each year, making investments here a good way to learn without risking too much for equity owners in the early days. Whether you are one of the market’s accredited investors or a novice working toward this trust, seeing the long view is essential to protecting short term gains and building wealth for large future purchases or retirement.
Market makers advise playing the long trends here, but leveraging investments is about more than simply parking money in a growth-forward mutual fund.
Leverage these insights to make other smart financial decisions.
Once you understand market movers and the complex web of entanglements that move commodity prices you can begin to see these same sorts of patterns in other financial decisions and investment opportunities. Training that you take as an investor in the stock market can help you make purchasing decisions across the spectrum of life. Rather than approaching finance as a spectator or mere pedestrian, you can take charge and make decisions that will create lasting ripples for the better.
Many investors, for example, find a new appreciation in commodities like cars. A junk car is often worthless to most average drivers, but vehicles work in much the same fashion as real estate properties or other commodities that increase the value of your total assets. A vehicle title is a powerful thing, and selling cars has made many a rich investor. Alternatively, some buyers simply cash in on the scrap value of old cars. Searching for ‘junk my car’ will net you some positive research down this avenue of commodity trading. This model sees buyers purchase an old car for its scrap or car parts value and haulers have even sprung up so that you don’t have to do anything but list the vehicle title on a sales platform in order to find a car buyer and move a junk car. Trading in an unwanted vehicle for the cash you’ll get for the scrap metal can even allow you to pay a down payment on a new car, depending on the types of cars you’re getting out of your driveway.
Double down on safe bets to ground your investments.
Finally, a key component of any safety strategy involves CDs and bond purchases. These investment vehicles are recommended by investment advisers for their unrivaled strength over time. Bonds and their commercial bank equivalent, the Certificate of Deposit (CD) offer a fixed interest rate that matures at a set date in the future. They can be purchased for a few duration options and can be liquidated or reinvested, depending on the institution’s available options, once this date arrives. There is no safer investment than this selection of investment products; however the rate of return is much smaller in comparison to the investment opportunities that exist in abundance elsewhere. The benefit of a bond is that you cannot lose out. While stocks, real estate, or precious metals can lose value, a bond only increases over time. A foundational ownership of these strong growth products can help offset the possibility of losses in your other investments and create the stability you need to continue moving forward.
