Can you Bet on Your Assets?

There is great volatility in the market which affects all classes of assets including the coveted gold and silver. So investors need to do a long, and hard rejig on their investment portfolios as even experts think that this trend is going to continue for some more time. In such a scenario, which is the best investment to bet on to get the returns, some of them are listed below:

Stocks: The stock market is seeing an all-time high, and the equity market is undervalued though there is a risk if you bet on a downturn. The correction is going to happen sooner or later, the pros know how to do it, but as a common investor how do you do it? Some of the ways an investor can use the current situation are to go ‘short’ on a stock, an index or go for a fund which is exchange traded. An example of a short sale is when a buyer borrows from a broker and sells the share for a profit and buys replacement shares for a lesser price.

Cryptocurrency: Despite the recent volatility in the crypto market, the industry will see great investor turnout in the coming years. This investment, especially in Bitcoin, is still regarded as the best and the most attractive return that you can get when compared to the best stock available. Bitcoin along with other cryptocurrencies like Ethereium is considered a great ‘unlevered’ asset compared to other assets like pension funds and other such which can dilute the fiat currency value. Moreover, bitcoin is a volatile yet unrelated fiat investment that can bring great returns and is a great diversification of your portfolio.

Spread betting: It is a subsidiary strategy where the investors do not own the asset they on betting, but only gamble on the rise or fall of the asset based on the price suggested by the broker. The asset can be a commodity, stock or shares. Just like trading in stock markets, two prices will be quoted in spread bets too. The bid price is one quote which is nothing but the selling price or the ‘ask price’, and the other one is the ‘bid price’ which is the buying price. The spread is the difference in buying and selling price. Unlike securities trading, the broker who does the spread betting gets profits, so there are no commissions involved. The advantage of spread bets for investors is that they can leverage the experience and predict the rise and fall of markets, can bid for long or short term and also get tax breaks.

Shrimp market: The shrimp market is another place which is highly challenging to predict as it fluctuates more than the stock market. Investors of the shrimp market find the demand-supply dynamics hard to understand. Even if understood it is challenging to bet on the bubble-level prices, and for the market to be efficient, it has to be able to sell short. However, short-selling is not as easy in this market.

Investors need to understand the different types of portfolios and opt for the best which helps in investing smart and building wealth. It is up to you to decide on the type of investment that will suit your needs and take the right investment decision at the right time!

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