In a bid to secure your finances, it’s good to stay informed on different opportunities that arise. To get the best returns, you need to invest in a trade or industry that’s not already flooded or one that’s growing fast enough. Read on to see four uncommon trades that you should consider investing in to reap the results of working smart.
1. Initial Public Offerings
Initial public offerings or IPOs sometimes draw a lot of attention, which can affect professionals’ judgment on short-term returns. In this case, they may be a bit hard to purchase at a good price since they will have an exploded value right from the moment they’re made public. At other times, however, some IPOs remain low-profile for a while, and that enables investors to buy shares while the company is still extremely undervalued. When the company’s value is corrected, it leads to significantly high returns both for the long term and the short term. They’re risky to get involved in but promise great returns if the company in question does what it needs to do to push the company forward. In this case, therefore, it’s good to only take a risk that you can bear.
2. Venture Capital
Venture capital is another potential gold mine. This is especially true if the startup offers a product or service that will be in high demand, is managed well, and other details such as the location and marketing are all done right. For example, with the global market for home improvement standing at a worth of over $800 billion in 2018, it’s easy to see how startups in this industry could have grown. They would have simply needed to place themselves in the right position in order to draw a lot of attention and grow exponentially.
3. Foreign Emerging Markets
Another uncommon trade that you may be interested in investing in might be in a foreign country that’s experiencing economic growth. From government bonds and stocks to specific sectors going through fast growth, there are many options that one can take advantage of. For example, if a country that produces flowers can find a way to export a lot more than it initially did, this may present a great opportunity for investors. This would be a great opportunity to invest, given that every mother’s day, $1.9 billion is spent on flowers. Using your best judgment before committing will avail plenty of great opportunities as there will always be an economy that’s growing in one place or another.
4. Real Estate Investment Trusts
Also called REITs, these trusts can offer investors high dividends in exchange for government tax breaks. They make investments in both residential and commercial real estate. A number of things leave these trusts prone to swings, including the overall state of the economy, the real estate market’s current state, and interest rate levels. There are different types of risks with this investment opportunity, so you will need to practice for a long time and do thorough research so you can make accurate predictions bearing all factors in mind. You will need to know stats like the market for global foundation repair services had a value of $2.82 billion in 2018. It was expected to grow at a 7.2% CAGR during the period of the forecast starting in 2019 up to 2027.
If you’re interested in trading or have been doing it for a while and would like to explore other options, it’s always good to proceed with caution. If you can, work with an experienced professional who will safeguard your finances and help you to mitigate your risk.