Where to Invest $10,000 Right Now: Dividend Stocks, Big Pharma, Treasuries
While the Eurozone business cycle remains volatile and subject to concerns over Covid-19, our macroeconomic indicators continue to suggest room for outperformance. We expect bank stocks to outperform as regional cross-border bank consolidation increases. Given the recent pick-up in Covid-19 cases in the U.S. and some European economies, we see increased risks of a brief “double-dip” recession in Western economies.
Supply constraints in countries such as Venezuela, Iran, Libya, Nigeria and Mexico may get worse. In the Permian Basin of western Texas, producers have extracted oil faster than the pipeline infrastructure can transport it to Gulf refineries and port terminals. The Permian Basin, notable for its enormous supply of crude oil and gas, has no near-term answer to these serious transportation bottlenecks.
Online banks have all of the advantages of traditional banks, including debit cards and ATM access. P.S. If you want to learn more before investing $10k, here are a few resources you might appreciate. Once you’ve contributed the maximum amount your employer is willing to match, though, you’re probably better off using an investment vehicle other than your 401(k) for the rest of your $10,000.
European regulators are finally facilitating mergers between banks and encouraging them to become more profitable through consolidation. In September, two large Spanish banks announced they will combine to form the country’s largest lender. Memory what is uniswap chips are essential for performance-hungry applications that power the data economy, and memory is the biggest beneficiary of the AI revolution. In this world of hyper-accelerating growth companies, cyclical growth sounds like an oxymoron.
- We would also suggest gold as a good hedge against any dollar weakness or recession.
- We also expect some investors to lock in gains from the U.S. market after its stellar performance—you’ve just seen three years’ worth of performance in three months!
- The recent demonetization to encourage a shift from cash to a digital (taxable) economy should ultimately fuel growth.
- The main difference is that index funds can be bought and sold based on the price that is set at the end of the trading day, whereas ETFs can be traded throughout the day much like stocks.
These compare with our expectations of minus 5 percent and plus 5 percent, respectively. Against this backdrop, we maintain our cautious stance on risk assets. After the recent equity rally has pushed market volatility measures down toward a 12-month low, we expect the VIX index to rise back toward 20 or higher in the coming six months. Despite this improving sentiment, our macro models continue to suggest that a sharp slowdown in global activity growth is in store for 2020. With U.S. and global equity valuations elevated, we favor defensive strategies and assets, focusing on wealth preservation rather than accumulation—at least for now. Equity investors should focus on increasing their protection against inflation and adding cyclical stocks into their portfolios.
Index Funds, Mutual Funds, and ETFs.
Most governments are extending financial lifelines to their respective national aviation and aerospace industries. High fixed costs, emblematic of these industries, translates to a very wide moat. To help contain the coronavirus, most commercial flights are grounded. Countries that account for more than 98% of global TD Ameritrade passenger revenues have imposed travel restrictions. IATA, an airline industry association, recently forecast passenger traffic down 38% this year (this compares with the worst drop on record of -3.5% in 2009) and a 44% decline in passenger revenue. Every additional week of lockdown worsens this aero-mageddon.
Index funds are passively managed, which means that investments in the fund are bought and sold only to remain true to the index. An index fund is designed to provide the same return as the index it follows, so it won’t outperform the benchmark. But rates can — and probably will — fall again, and CDs lock in your money for a fixed period of time. The longer the term, the Biggest stock gainers of all time higher the rate, but also, the more risk that rates will rise and you’ll earn less than you otherwise could. Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear).
Fundrise lets you pool funds with other investors to purchase real estate. It automatically invests in a variety of real estate properties for you across the US, including residential, commercial, and industrial projects. With inflation, $10K to invest may not seem like a lot of money these days, but it’s plenty if you want to get into some interesting and imaginative investments. Let’s say that you have a credit card with an outstanding balance of $10,000, that has an annual interest rate charge of 19.99%.
- That’s akin to multiple shocks, and even after that nightmare, the banks would have twice the required capital.
- As such, our advice may not apply directly to your individual situation.
- For many investors, the prospect of a few percentage points of capital gains plus 5% or more in dividend yields must look rather dull.
- As a financial planner, it’s been easy for me to tackle personal finance and financial planning-related articles on an ongoing basis.
- Exchange traded funds, or ETFs, can be managed like index funds or mutual funds depending on the specific fund but they are traded constantly throughout the day, like stocks.
Many investors choose traditional securities like individual stocks, mutual funds, and exchange-traded funds (ETFs). IRAs are tools to save for retirement, so it makes sense for most people to stick with traditional investments rather than alternative IRA investments that are more speculative. These pooled investment vehicles own portfolios of stocks or bonds, and aim to achieve clearly defined goals. Things like investing in a specific market sector, generating cash flow, tracking the price of a commodity like gold or emulating the performance of a market index like the S&P 500.
Hedge Inflation Risks
To temper volatility from cyclical stocks that are influenced by the economy, adding equities with consistent earnings growth seems prudent. A good example of this are companies that provide outsourcing for operations such as finance and accounting, reporting, web development, call centers, HR functions, marketing, and so on. The best of the cyclical stocks, those well-positioned competitively, are likely candidates for outperformance as markets anticipate the re-start of economic growth. A disciplined strategy of buying world-class cyclical companies during the downturn may prove very rewarding when markets begin to price in recovery. The final way you could invest $10,000 is through peer-to-peer lending. P2P lending sites match borrowers who need a loan with lenders looking to invest.
Invest in Real Estate with $10
If economic growth slows further, as our models suggest, bond yields should continue to fall, perhaps toward 1.5% on U.S. Treasuries, and zero for Treasury Inflation-Protected Securities (TIPS). The MSCI All Country World Telecommunications Services Index is made up of 81 constituents in developed and emerging-markets countries. By one valuation measure, enterprise value-to-Ebitda, it trades at a discount of more than 40 percent, compared with the aggregate equity market benchmark, the MSCI All Country World Index. There’s a lot to be said for investment income, especially delivered via companies that are fully capable of sustaining that income for many years ahead.
How to Invest $10,000: Step-by-step Guide
Because you’re buying just part of a farmland parcel, you can invest with as little as $10,000, and sometimes less depending on the price per acre. Full-service investment firms can take a huge bite out of your potential for investment profits when you calculate their annual and other fees. In fact, it’s not uncommon for some investment firms to charge 1.5 percent or more in annual and other fees. Investing in a traditional IRA or traditional 401(k) will reduce your taxable income this year. While investing in a Roth IRA or Roth (401k) will give you tax-free withdrawals in retirement.
Many investment options have small minimum requirements and low fees. Shop around and consider your options to find the best way to grow your $10,000 investment. Before that money burns a hole in your pocket, consider your goals and timeframe. If so, avoid putting it somewhere that’s too risky, especially if you might need it in the short-term. You can sell advertising time within the podcast or let a company advertise on your host page.
Get a Free Stock (worth between $5 and $
With a Roth IRA, you pay taxes upfront, but as long as the money is deposited for at least five years, you don’t pay any taxes on withdrawals. Keep in mind that for the current tax year, the annual IRA contribution limit is $6,000, or $7,000 for individuals aged 50 and up. These are some of the safest investments in the world, since they’re backed by the full faith and credit of the U.S. government.