In the current climate, it’s easy to see why investors may be getting anxious. With the UK having opted to leave the European Union on June 23rd, uncertainty regarding the state of the economy and the effect this will have on the investment market looking unpredictable, it is sure to be a worry.
With companies no longer being able to accurately predict their future earnings and the value of the pound dropping rapidly then slowly growing again, considering more stable sources of investment such as precious metals, government bonds and money market instruments is wise.
To take away some of that post-Brexit anxiety you may be experiencing, here are some of the best investment opportunities that you should consider moving to in these uncertain times:
Gold and Precious Metals
Historically, gold and precious metals have held their value much better than shares or currency, outperforming other investments significantly by holding its value in times of inflation too. The stability of the gold and precious markets make it one of the most sought after and wise investments in extreme financial situations and both boom and bust economies. If the cost of living looks set to increase, the price of gold will increase at the same rate, equally if deflation is experienced, gold tends to hold its value as proven throughout history. By investing in gold with a company like Stunt and Co there are lots of different prices and weights, whether you’re wanting to invest a lot in gold or just to diversify your assets for extra financial security.
Another much less volatile investment is safe currencies like the Norwegian Krone and Singapore dollar. Although currency in itself is not always safe, especially with the current euro situation and value of the pound. The return on investment on these currencies is not as high as the US dollar, they’re much more stable with less fluctuation making them a safer place to invest in the long term. The Brazilian real is looking like a desirable place to invest in the current climate as a result of its double-digit carry rate and predicted inflation.
Bonds tend to be a relatively safe investment but once again with little return on investment. However, bonds like premium bonds tend to be a relatively safe place to store your money whilst offering security and opportunity to win tax free money. For more chance of earning on your investment, gold miners bonds are a relatively secure way to be sure you’ll make money rather than lose out thanks to the rising price of gold.
Diversify Your Current Investments
In uncertain times, it can be rest to look for places to invest which are likely to remain consistent until the market becomes more stable and you can then reassess where your assets are and reconfigure them in order to make more money. Diversifying your portfolio across different places is always a good way to cover all bases and avoids having all of your eggs in one basket, should the worst happen. Balancing out the amount of non-sterling assets and sterling assets help to ensure that there is a well distributed store of value.
After the Brexit, the uncertainty looks set to continue for the foreseeable future, so planning ahead for what to do with your investments now is wise. With strategic planning and diversifying the places where you invest, the impact of the Brexit will hopefully be much less intense than without and remember, all investors are in the same boat to weather the Brexit storm together.