Have A Low Tolerance For Risk? These Safer Investment Bets May Be Better For You
Investing in the stock market is one risky venture. While it can be a good way to grow wealth over time, putting money in it can easily lead to losses in the short-term thanks to the volatility of the market. This may be a deterrent for newbie investors who have a low-risk tolerance.
But this does not mean that investors shouldn’t risk betting on stocks altogether though. According to finance instructor Mary Fox Luquette, there are certain companies that a person can pick to minimize risk as they tend to retain their value in the long run. These are her specific recommendations.
The University of Louisiana at Lafayette instructor particularly enumerated four industries investors can put their money into. First is the healthcare industry. Since getting sick and seeking cures is a fact of everyone’s life, companies operating in this space will have a stable market even during times of recession. Consider investing money in pharmaceuticals and biotechnology companies.
Another industry that will remain afloat during economic booms and recessions is construction. As Luquette pointed out, people and companies will always have a demand for construction materials and chemicals. Investors may know this need by experience as themselves might be planning to upgrade or build their own homes.
Investing in companies operating within the utilities industry is also recommended. The need for water, electricity, and gas is perhaps even more important than the previously mentioned ones given that they are among man’s most basic requirements to live comfortably. Safe to say, those providing these services to the millions of people who demand them won’t be going out of business anytime soon.
Lastly, Luquette also encourages people to consider investing in businesses that provide information technology (IT) and communication services. The necessity for the products they offer would only become more and more apparent as the world progresses technology-wise. An investor may choose to buy individual stocks within the aforementioned sectors or shares of the industry itself through a mutual fund.
No Absolute Certainties
While going this recommended route when investing may protect an individual from certain risks, it’s important to remember that investing itself can’t be totally risk-free. After all, no one is exempt from the negative effects of economic downturns.
There’s also the fact that even well-known corporations may suffer through poor management time and again leading to their shares losing some of their value. In the end, seeking guidance from a financial planner and keeping a diversified investment portfolio is still worth doing to protect one’s assets.
More in Pocket Change
This is What People are Doing with their Savings and Why You Should Do It Too
People are not spending their money on shopping and going on extended tours, but are putting the dough into the saving...March 13, 2020
Here’s How You Can Stay Productive While Working Remotely
If you are a freelancer or a self-employed worker, you get to enjoy the many perks and convenience of working wherever...March 13, 2020
Here’s what UK’s Recruitment Agency “Hays” Boss Has to Say about Immigration Plans
UK’s government controversial decision about immigration has been supported and endorsed by the Boss of recruitment giant Hays. He has shared...March 12, 2020
Should Retirees Invest in the Stock Market?
As it is reported that stocks of North America keep on sliding, numerous retirees who figured they could get a profit...March 12, 2020
Jazz Singer-Songwriter Norah Jones Just Sold Her Cobble Hill Home Equipped with a Heated Pool
Grammy-winning jazz singer-songwriter and pianist Norah Jones has parted ways with her historic home where she reportedly wrote her famous songs. It seems...March 12, 2020
How Working Women Can Secure Their Retirement Savings Now
It turns out, several working women fail to secure their retirement savings. According to a recent study titled CNBC/SurveyMonkey Women at...March 11, 2020
Here Are All the Luxurious Things Mike Bloomberg Could Have Bought With His $500 Million Net Worth Before Spending All of Them
There wasn’t a lot of uplifting news on Super Tuesday for the more dynamic wing of the Democratic party as Bloomberg...March 11, 2020
Most Expensive 2021 Porsche 911 Turbo S Costs Over $273,000
The Porsche 911 is already a costly vehicle, even in base Carrera structure but the new 992-Series 911 Turbo S is...March 9, 2020
Save Not Splurge: How People Are Using Their Tax Refunds Nowadays
Taxpayers are now opting to save their tax refunds, a significant change from the previous year wherein a lot of Americans...March 9, 2020