Investment guides are there that will take you by the hands of small sums of money, and take you into the world of more specialized finance.
What are the best actions and what will the financial markets do in 2022? Is it better to buy ETFs, or Mutual Funds, or another type of financial instrument?
After a record-breaking 2020, in the middle of 2021 the financial markets have started to scale down for various reasons; at the world level since Trump’s trade war, in Italy the change with a sovereign government and the increase in the spread have affected banks. The 2019 instead started well and at least until May there was a growth both in the global and in the Italian markets. Certainly it is a difficult year for investors: government bonds guaranteed with very low returns and volatility of equities, do not help to make financial investments for everyone. This is a part of the Investment tips now.
All the more reason you need to use common sense and the basic rules to invest, if you do not know this matter thoroughly, rules that we have reported here in the first part of the article with related links to further information. Continuing reading, instead, you will find opinions on various financial products and their peculiarities.
Start investing: know the basic rules
The higher the return, the higher the risk for capital, moreover those that were once called safe investments, that is, government bonds, as well as the postal bonds have low and unattractive interests for the investor, here so that in recent years, instruments such as the Mutual Funds, ETFs have finally come to the ears of everyone, even the small saver who has a few thousand dollars to make money to try to improve their financial structure.
But even the shares are back in fashion during this period, especially the shares of Italian companies of excellence, titles that on this site we often take a look at as they are closer to us and easily ‘controllable’ by the investors themselves. Finally, there are investments for the more experienced, made through Online Trading.
The main rules to know before investing money
It is not enough to know where to invest,i.e. which financial instruments to buy, but you have to follow your own investment method, to do this you need to know some basic rules on how to use money.
What You Need To Know Before Buying a Financial Product
First of all, before putting your savings to capitalize, you need to have a picture of our current financial situation, so make a plan to diversify, so that you can carefully decide which type to focus on and evaluate how long you want to keep the money firm, that is if we want to engage them in the short – medium or long term.
Unfortunately, here many savers who are not experts commit their first mistake. BEFORE deciding whether to invest all or part of your capital, you must absolutely stop and make a precise project, which as we said before, an investment project that involves knowing:
- How much of the available capital we want to make use of.
- In which form of instrument / the financials put their money (or maybe in other forms, like real estate or a company) that is diversify.
- The time period for which we can commit that particular capital.
- It will therefore be sufficient to sit down, take a pen and paper, call the spouse (if there is one and if we have the communion of goods) and start deciding on our financial future, so as to decide the investment strategy.
- For example, we recommend for the small saver to always use the drawer’sstrategy, in order to minimize the risk and maximize the income with a portfolio of securities adequate to their invested capital.
- We also need to know other valid investment methods, such as the Dual Momentum , or the best time to buy upside stocks, learn about widely used investment methods like the famous Sell May go away , even know the best time.
- Moreover, we must always remember that, for how many predictions and calculations we can make, investments are never totally safe , we write this almost always and every time we never tire of repeating it, because sometimes people tend to forget about it.
To this, we add a substantial collapse of the Nasal technology stocks that began at the end of August 2018, widely announced by us, a natural collapse, after 9 consecutive years of growth. This collapse was also due to the Federal Reserve policy, which further raised interest on American bonds, which made them much more attractive and much safer investments than stock dividends.
In June 2018, the Milan Stock Exchange had problems with the formation of the Count Government and the failure to appoint Prof Savona as Minister of the Economy, who until recently was a leading exponent of the euro economists . This destabilized the spread and banking stocks also suffered, bringing all financial markets to the brink of a serious crisis. On the other hand, the 2018 Stress tests of Italian banks seem to have gone well.
The Government launched on June 1 instead seems very convinced to stay on the euro, although aware of having to modernize the structure of the European Union, so it is hoped that the markets will resume their growth.
America’s duties could create problems for everyone, though the US is still the world’s leading economy; as such it is fundamental to the performance of financial markets. President Trump’s financial policy seems inspired by a new internal liberalism that should penalize goods from abroad through tariffs, even if so far Wall Street has responded very well to Trump’s policies.
USA had indeed promised an American economic policy with high tariffs for foreign goods, more work for Americans and more aid to American companies.
It must be said that he met the foreign managers of important industries working in the States (such as the FCA), for now the reactions of the American stock exchange are very positive and a little all the global stock exchanges are having good performances, including the Italian one.
The influence of oil prices:
Black gold has influenced the economic trend of 2017. A battle is taking place between American and Arab producers. A clash that is favouring a low price for crude oil with the intent to damage US investments. This deadlock could last for at least the first part of 2017.
Financial markets do not seem to be undergoing major shocks, but we will also have to wait for the forecasts of the various rating agencies that usually express themselves at the end of December for more reliable information.
The importance of the cost of money
There are states that issue bonds with a negative return, in order to keep the cost of money low. The other types of bonds in this way also have low returns and investments are held back.
The trend of the Italian stock exchange in this early 2017 seems more than positive, the growth figures coming from the European Union, but above all the data coming from Wall Street and its capitalization record and the insistent rumours of a rate increase of interest.
How much money to invest and for how long?
Before starting to make money, you should sit down and make an investment strategy that does not put too much risk on our capital, such as to make us earn, to be as differentiated as possible, not as clever as possible, in the sense who must take into consideration how much money we can commit and how long we can keep investing this money.
Investment tips depending on the amount available
Earn with small amounts.
100000 dollars.
40000 dollars .
20000 dollars .
1000 dollars
200 dollars
From 10 to 50 thousand dollars
100 dollars
Invest according to your risk profile:
Today all the banks make the risk profile of the customers, that is the possibility of risking their own capital that can put the customer at stake, therefore building a portfolio of securities adequate to the cognitive and capital capacities of the same and on the basis of which they will then propose the financial instruments. The risk profile is based on parameters such as: knowledge of financial markets, knowledge of financial instruments, availability of capital, age of the client, income, type of work performed, the real estate owned by him.
We have tried to collect articles in which there are the best types of investments for every possible risk profile, here are some ideas about what your risk profile might be:
- Suitable for a child
- For a pensioner
- Low risk for the drawer
- For the professional trader
- Choose the most convenient current account
- The first step for a saver to do is to choose a current account with little expense and offer the greatest number of services possible.
The Last Words
Today, like today, banks operating in Italy offer a large number of C / C packages for their clients, according to their risk profile and according to their needs. Current accounts are not real means of investment, even if they bear interest; they are so low that we can consider them more a tool for savings than anything else. We of Economic Italia, we are trying to understand, through reviews and opinions collected online, which are the best current accounts.
