COVID-19 has caused a lot of uncertainty around the world. Still, just like a phoenix can rise from the ashes, an investor can find plenty of positives in even the darkest situations. Here are some of the many valid investment options to consider during 2020’s uncertainty.
If you’ve been looking at commercial property for sale, you may have noticed a slight dip in the price tags. While lower sale prices are not happening everywhere, many real estate agents are witnessing a slowdown in sales out of caution for the future ahead. Now could be your time to pounce.
The commercial property market runs in a cycle consisting of recession, recovery, expansion, and hyper-supply. This cycle happens across the United States, on average, every six years.
The recession phase highlights falling prices, while the recovery phase shows a leveling off of rental rates and vacancy decline. It’s often at the beginning of this phase that property investors like to get all their ducks in a row for a lucrative purchase.
If you’re looking for a risk-free investment option during 2020, treasury securities could be a sound option for you. Treasury notes, bills, and bonds all come with the backing of the United States government, which means you can count on getting principal and interest at the maturity of the investment.
Treasury bills are not interest-bearing, but you will receive more than you paid once they mature. For example, if you buy a $100 T-bill for $80, you may receive $100 once it matures.
Treasury bonds, on the other hand, mature in 20 and 30 years and pay interest every six months. You discover their price and yield when they come up for auction throughout the year.
Treasury notes require a little more forethought. They are issued in two, three, five, seven, and ten-year terms. You earn fixed interest every six months, then the face value once the note reaches maturity. Demand drives the price tag of these notes. So, when demand is high, the cost is higher, and the investor return is lower.
Corporate Bond Funds
If you’re new to the world of investments, then corporate bond funds may be an excellent stepping stone. While this investment type is not FDIC-insured, the risks are generally well-managed due to the short investment length.
They mature in 1-5 years, which means your risk of interest fluctuation is lower than what you’d find with long-term investment options. You can buy and sell corporate bond funds at any time.
Municipal Bond Funds
Municipal bond funds are an investment type that many people prefer because the interest you earn on them is free of federal income tax. You may be exempt from having to pay your local and state taxes on them as well.
You can buy these bonds from local and state governments, and they can provide cash flow. What’s more, you can purchase them individually, with an exchange-traded fund, or through a mutual fund.
S&P 500 Index Funds
Do you want to achieve higher returns than what traditional bank saving schemes are offering? S&P 500 index funds might be right for you. The fund consists of some of America’s largest companies, such as Walmart and American Airlines. They tend to be one of the least risky stock options due to the desirable financial situation of many leading American companies.
Even though 2020 has not created the best economic foundations for investors, there are still plenty of sound options such as commercial real estate and treasure securities that might be worth your attention. What will you invest in next?