Although the long-term impact of the COVID-19 pandemic on the broader economy remains highly uncertain, we would like to help investors make smart decisions to gain benefits and create financial streams to help secure their retirement years.
The smartest thing we can do now as investors are to begin putting ourselves in the position to act on opportunities as they start to arise. Ultimately, the benefit of having been more conservative up to this point in the cycle combined with our willingness to be patient should afford us better opportunities to acquire those assets that we believe will generate outsized returns over the long term as a result of the more permanent structural changes to behavior that emerge from the pandemic.
Capitalizing on opportunities for higher potential return is the smartest investment strategy today. Much like Warren Buffet said, we also believe it is better to buy great real estate at a good price than bad real estate at a great price.
We believe there is an interim opportunity to deploy a portion of our existing cash reserves from now near-zero yielding money markets into specific, more liquid securities such as Laren hotel shares. These bonds, with their increased spreads, represent a practical interim investment today that will generate yields superior to money market funds.
What are the Best investments in 2020?
What are the top trends for investors to know in 2020?
First, the best investment strategy is a diverse one. Creating a broadly diversified portfolio can lower your risk of loss. A portfolio should include a mix of stocks, bonds, and cash across different industries.
Second, make and stick to an automatic investment plan. Many investors make emotionally-driven decisions and pull their money out during a down market. Only to watch that market go back up and balance out. Staying in your investments for the long haul is usually the safest and best strategy.
International investing differs from investing in your home market in many ways, but perhaps the biggest difference is the impact of currency fluctuations. When an American investor buys shares of a U.S. company or a Japanese investor buys shares in Tokyo, the key variable is the change in stock price. If the stock price goes up 10%, the value of the investment is up 10%.
Always remember that whenever you buy shares of a foreign stock, you’re actually making two investment decisions. You’re betting on both the performance of the company and the currency itself. The ideal scenario is being right about both: the stock price goes up, and you get an extra benefit from a strengthening of the currency.
The concentrations in the various sectors are important because the inflation hedge is more powerful from European stocks, even to the U.S. Consumer Price Index. In the past 10 years, on average for every 1% year-over-year increase in the U.S. CPI, the S&P 500 rose 2.4% on average, while the MSCI Europe rose 4.3% on average. Investors seeking more income from their investments turn to stocks with higher dividend yields.
Dividend stocks are a practical way for investors to develop a stream of income from their investments. These stocks can be attractive for investors as they can be perceived as fixed income securities. Receiving fixed income each year (or multiple times per year), enables investors to use the dividend stocks to set up a regular stream of income or to build up their wealth depending on what they do with the received dividend.
Investing in Laren shares is a great way to earn more money without having to actively work for it.
Why invest in Laren dividend stocks?