Best investments in 2022 — DotBig Review

The current difficult geopolitical situation, sanctions against Russia and Russian major financial institutions, caused by the invasion of Ukraine, are making financial markets more volatile. So investors find it relevant to look for safe investments, which will protect their cash thanks to the stability. DotBig experts have examined the markets to compile this list of risk-free investment trends for 2022.

Best investments in 2022 — DotBig Review

Top assets for investment

Before you start exploring the list, it’s necessary to notice that the risk of losing money doesn’t disappear. These are just products that are more stable in this volatile situation, which means you have more chances to get returns on higher rates in the future.

1. Gold. Gold is considered to be one of the top investments just because this asset is capable of keeping its price the same for a long period. To make it more clear, here is the statistical data. Throughout the passing year, the lowest point in price rates was at $1,724.7 per ounce and the highest — was $2,044.8 per ounce. This means that throughout the entire year, the cost hasn’t changed more than by 18.5%.
2. Real estate. The relevance of making investments in real estate depends on the peculiarities of the local market. Moreover, it’s worth considering that, despite high expected returns, this product requires additional expenditures, except for the initial investment. So investing in real estate, whether commercial or rental, has a quite high entry-level.
3. Preferred stocks. These are securities that combine features of both stocks and bonds. Similar to bonds, preferred stocks provide dependable income payments, but they are more flexible, and, usually, have a higher yield paid to investors. Preferred stocks might be converted into regular shares. Investors can exchange them at a specified price. Additionally, higher dividends are paid from preferred stocks, which is why they are often bought back.
4. Dividend-paying stocks. In modern conditions, when the Russian invasion of Ukraine is escalating, experts suggest paying attention to dividend stocks of the companies from the energy sector. The sanctions against Russian suppliers were one of the reasons why dividends of other companies increased to 10%, while experts predicted 8% at the beginning of 2022. Specialists advise considering dividend stocks of such companies as Valero Energy Corporation, TotalEnergies, Amcor, Plc., and others.
5. Cryptocurrency. Cryptocurrencies are often considered safe havens for investors. Despite high volatility, they are protected from many changes that may happen to regular financial markets. For instance, cryptocurrencies don’t suffer inflation. Then, crypto-assets don’t depend on governmental institutions. Therefore, unlike fiat currencies, they won’t decrease in prices because of sanctions that might be imposed against certain states.

If you aim to invest money in stable assets, you may consider these top investments. Remember to examine the conditions as of the date of making an investment, and don’t neglect macro-economical aspects that can impact price rates.

Final thoughts

To conclude, you should realize that even the best assets cannot be completely risk-free. There is always a probability that something will decrease the potential returns. That’s why pay attention to the stability of assets rather than to their high yields.

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