Read this guide and discover what a stable investment is, how to look for it, which ones are the best and where to invest your money. In this article, you can know what real assets are and their classification.
What is an investment?
Investment is the action of allocating capital to generate the benefit of an asset.
Financial investment can produce both a risk and an opportunity.
According to the Cambridge Dictionary, an investment is:
“The act of putting money, effort, time, etc. into something to make a profit or get an advantage, or the money, effort, time, etc. used to do this”.
Although the investment can be made in the short and medium-term, it is usually carried out in the long term.
The agent can be a natural person, an institution or a company.
What is a stable investment?
A stable investment is a typology that produces profitability in the long term.
It is the best alternative for those investors who opt for the minimum risk.
Therefore, the amount of income is predictable.
Examples of stable investments are fixed-income tools.
How to find a stable investment?
Stable investment is justified in the diversification of markets.
This strategy comes from the permanent portfolio created by Harry Browne.
For this financial advisor, you should invest equally (25%) in:
With the permanent portfolio, the investment is safe, and it is not affected by economic cycles.
For an agent to achieve stability, he must know the different markets:
- Stock market shares grow when the world economy, or a country, increases;
- With economic recessions, the demand for gold increases and its price increases too;
- On the other hand, assets decrease and cash is an excellent option to buy at a low price;
- In a period of deflation, investors expect the interest rate to be negative. Thus, the value of the bonds increases.
What are the most stable investments?
Generally, the stability of investments depends on the market and the global economic and political situation.
Its stability characterizes Forex.
Investing in this scenario allows traders to trade and speculate on currencies in the world’s largest market.
On the other hand, in recent decades, investment in infrastructure has grown.
And, since the arrival and crisis of Covid-19, it is valued as a stable investment.
Infrastructure is an asset that, in the long term, is connected to inflation.
As they are long-time projects, the investor generally recovers from it the initial capital.
Before 2008, banks financed this market.
But, with the Lehman Brothers crisis, regulation changed and new investors emerged.
And, although initially, the capital was public, currently the source is also private.
These assets can be divided into sectors.
The analysis company Oxford Economics produced a report that visualizes which were the most ‘exploited’ sections before 2017 and what the trend is until 2040.
Electricity and roads are the infrastructures with the highest percentage of investments.
Although, the current trend is lower than in 2015.
Telecommunications have also decreased compared to the previous time frame.
Investment in water is the only one that will be maintained in the next 20 years.
Likewise, the document divides investment in infrastructure by areas.
Asia is the continent in which infrastructure is the most chosen sector.
And, the trend, for the next 20 years, is to increase investment to 59%. America and Europe are down 3% compared to 2007-2015.
Finally, another of the stable sectors is renewable energy.
Part of its production is independent of the human being.
The performance of this type of asset is attractive and has an increasing trend.
According to the International Renewable Energy Agency, renewable energy sources are:
- Hydroelectric power;
Where to invest your money?
If we establish the strategy of the diversification, Barone Enterprise is committed to two markets:
The company offers trading bots to solve the complexity of the two economic scenarios.
Hire a bot, which will trade for the client.
That is the spirit of Barone Enterprise.
In this way, the investor does not need extensive knowledge in cryptocurrencies or Forex.
The Clone Trade service allows you to benefit from the operations carried out by a specialized trading bot.
Barone Enterprise offers Genesis Bot, Glider Bot, Glider Pro Bot, Floyd Bot, and Bat Bot.
The company’s robots help generate passive income and achieve financial freedom.
On the other hand, with cryptocurrency, the investor can carry out transactions, taking advantage of the fluctuating market.
Cryptomatic Trader is an exclusive service through which any user can generate income on their own crypto exchange with full control of their cryptocurrencies.
What are the real assets?
The most important real assets are the following:
- Real estate funds: real estate, plots, lots, etc;
- Raw materials: gold, oil, copper, etc;
- Renewable energy;
Definition of real assets
The real assets are the goods, which reflect the underlying asset’s ownership, with greater or lesser immediacy.
This type of asset generates profits for the service it provides to society.
The investment can be tangible, like a property, or intangible like art.
These markets, growing in recent years, must be valued and demanded by people.
A stable investment is a financial action that produces profitability in the long term.
For its part, a real asset is a good, valued and demanded by people.
From this guide, you can draw the following conclusions:
- An individual, company or institution can carry out the action of investing;
- Stable investing is the perfect option for brokers who are unwilling to take risks;
- The permanent portfolio is based on equal investment in stocks, gold, money, and bonds;
- Stability in investments can be achieved through market diversification;
- Renewable energy or infrastructure are examples of stable investments.
Barone Enterprise uses the diversification strategy, with the possibility of investing in two markets: Forex and crypto-assets.
In order for the client to increase his profits, the company has designed automatic bots.