It is the start of a new chapter in the markets with the ushering of the new year 2023. The past year has surely been a roller coaster for everyone in the markets. With the beginning of 2023, the question investors ask would be “where do I invest my money in 2023?” This question can be easily broken down into many sections but only a few would be covered here.
Broad ETFs (Exchange Traded Funds)
Broad ETFs are said to be the go to point where investors seek coverage if they do not know which stocks to put their money in. Broad ETFs give the investor a diversified base meaning that they would not have to worry about each individual stock they choose. Typically in such situations or environments that we are in, broad ETFs like those that track the S&P 500 usually do well compared to cherry picking each individual stock.
ETFs that pay dividends
ETFs that pay dividends can also help an investor ride out these volatile times in the markets. When an ETF is able to pay out dividends, it speaks something to the investor. What does it speak, you must wonder? It is trying to say that the ETF is large and mature enough and that it is willing to share some of its profits with its investors. Some investors tend to like this point.
However, there can also be ETFs that are paying dividends or have just started paying dividends, but their share price has been going down over time. Investors should take a look at the ETFs before making a decision.
Banks
Banks are one category that people and investors cannot live without. Just imagine a world that we live in now with no banks. With increasing interest rates by the governments from around the world, banks in some countries are able to offer higher interest rates to their customers, competing with one another on who can offer higher rates. With increasing interest rates offered by the banks, this may also be reflected in their share prices. Banks are said to be the cornerstone in some economies around the world.
Individual stocks
Only if an investor is very certain of the stock that they are holding and want to add into them, then should they put their money in, as some stocks are heavily punished in the current macroeconomic environment.
High growth baggers
High growing or fast growing stocks should be avoided in such market outlooks for now.
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