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Amazon founder and executive chairman Jeff Bezos sounded the alarm 3 years ago.
In an interview with CNN, Bezos said the economy “doesn’t look good right now.” (1)
“Things are slowing down. We are seeing layoffs in many sectors of the economy.”
Even though his comments are a few years old, current market volatility suggests you may want to tighten your budget.
“If you are an individual considering purchasing a big screen TV, you may want to wait, hold on to your money and see what happens,” recommends the billionaire. “The same is true with a new automobile, refrigerator or anything else. Just take some risk out of the equation.”
This is not a good sign for investors.
But not all investments are equal. Some – like the three listed below – might be able to perform well even if the economy falls into recession.
It may seem counterintuitive to have real estate on this list.
While it’s true that mortgage rates have increased, real estate has actually demonstrated resilience in times of rising interest rates, according to investment management firm Invesco.
“Between 1978 and 2021, there were 10 distinct years where the federal funds rate increased,” says Invesco. “Over these 10 identified years, U.S. private real estate outperformed stocks and bonds seven times and U.S. public real estate outperformed six times.”
Well-chosen properties can provide much more than just price appreciation. Investors also benefit from a steady stream of rental income. But you don’t have to be a homeowner to start investing in real estate.
First National Realty Partners allows accredited investors to own a share of institutional quality properties leased by national brands like Whole Foods, CVS, Kroger and Walmart.
You will get a stable, positive cash flow and the company will take care of the work for you. FNRP’s team of experts reviews each transaction against a rigorous set of investment criteria and manages them in-house, so you don’t have to worry.
You can also try Mogul, a real estate investment platform offering fractional ownership in prime rental properties, which provides investors with monthly rental income, real-time appreciation, and tax benefits – without the need for a large down payment or 3 a.m. tenant calls.
Founded by former Goldman Sachs real estate investors, the team selects the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in quality institutional offerings for a fraction of the usual cost. You can watch a Yahoo Finance interview with CEO Alex Blackwood, explaining why he started Mogul and how it can help those who can’t afford to buy a home access the property market.
Each property undergoes a verification process, requiring a minimum return of 12%, even in adverse scenarios. Overall, the platform has an average annual IRR of 18.8%. Their cash-on-cash returns, meanwhile, average between 10 and 12% per year. Deals often sell out in less than three hours, with investments typically ranging from $15,000 to $40,000 per property.
Each investment is guaranteed by real assets, not depending on the viability of the platform. Each property is owned in a standalone Propco LLC, so investors own the property and not the platform. Blockchain-based splitting adds a layer of security, ensuring a permanent, verifiable record of every stake.
Getting started is a quick and easy process. You can create an account and then browse available properties. Once you verify your information with their team, you can invest like a tycoon in just a few clicks.
Trending: Robert Kiyosaki says this asset will grow 400% in a year – and he begs investors not to miss its ‘explosion’
Gold is considered a natural hedge because, unlike paper money, it cannot be printed at will by central banks. This rarity is part of what gives the metal its lasting appeal.
It is also widely considered to be the ultimate safe haven. Gold is not tied to any country, currency or economy and when financial markets become volatile or geopolitical tensions flare, investors often flock to it, driving up prices.
A gold IRA is an option for building your retirement fund with an inflation hedge asset.
Opening a gold IRA with the help of Goldco allows you to invest in gold and other precious metals in physical form while still providing the significant tax benefits of an IRA.
With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. Additionally, the company will offer up to 10% free money on qualified purchases.
If you’re curious if this is the right investment to diversify your portfolio, you can download your free information guide to gold and silver today.
You probably think of art as just a canvas that makes your living room prettier, but art has quietly outperformed other asset classes for years.
Art is part of a $1.7 trillion asset class according to Deloitte, about half the size of venture capital and private equity. Contemporary art has outperformed the S&P 500 by 131% over the past 26 years and its correlation with stocks is close to zero, according to Citi. Its low correlation with stocks makes art a useful hedge against market volatility.
Masterworks allows any savvy investor to access an asset that was previously reserved for the ultra-rich. Instead of buying a single painting for millions of dollars, you can now invest in shares of individual works.
Simply browse their impressive paint portfolio and choose the number of shares you want to purchase. Masterworks will take care of all the details, making high-end art investments both accessible and effortless.
Masterworks returned approximately $61 million to investors. New deals sell out in minutes, but you can skip their waitlist here.
See important Regulation A information at Masterworks.com/cd
With all your spending, it’s sometimes easy to lose track of where all your money is going. From groceries to bills to streaming service subscriptions, countless goods and services are putting a strain on our wallets these days.
If managing a budget seems overwhelming, apps like Rocket Money can simplify the process.
Rocket Money tracks and categorizes your spending, providing a clear view of your cash flow, credit, and investments in one place. It can even uncover forgotten subscriptions, helping you cut unnecessary costs and potentially save hundreds of dollars each year.
For a small fee, the app can also negotiate lower rates on your monthly bills, making it a valuable tool for keeping your finances on track.
We rely only on verified sources and credible third-party reports. For more details, see our editorial ethics and guidelines. CNN (1)
This article provides information only and should not be considered advice. It is provided without warranty of any kind.
