Global investment opportunities in the 21st century are diverse and at times confusing. With so much to consider, to research and to choose from it’s not always easy to know where’s the best place to invest your money.
From traditional investment opportunities such as stocks and shares to commodities, overseas properties and peer to peer lending schemes, today’s choices are myriad. We take a deeper look at the very best investment opportunities, the real cream of the crop, within each of these investment areas.
Also known as P2P, these types of investments are on the rise and for a number of good reasons. Peer to peer lending allows investors and businesses to do away with banks and related levies, it also provides the investor with more choice over where there money goes, which is ideal in an age of ethical investing and consumer choice.
The easiest way to get started in P2P lending is via a specialist website which introduces a range of global entrepreneurs with potential investors.
The beauty of the best P2P lending sites is that borrowers have their risk levels reliably assessed and their credit checked, before investors’ part with any money. This type of lending isn’t just beneficial to the lender either; it’s a key way for small global businesses to access funds that they wouldn’t normally be able to.
In turn these investments are thereby improving the global economy and also the situation of people all over the world. The great thing about these schemes is that the lender can be a part of the process, voting on which businesses should receive funds and having a say about where their money goes at the same time.
Bitcoin Lending→The Future of P2P
Bitcoin lending is the next step in the evolution of peer to peer lending. So what are the specific benefits of bitcoin lending? Well firstly bitcoin lending casts a wider global net.
In some parts of the world such as the Middle East and North Africa, only 18% of the population have access to a bank account. Because bitcoin lending doesn’t require either party to have a traditional bank account, this process offers access to plenty of global businesses that investors can both capitalize on and help, which they wouldn’t normally be able to reach.
To take part in bitcoin lending, for both investors and borrowers, it’s simply a matter of having access to the internet. With online access growing year on year, operating via the web is a smart way to move.
Access to borrowers from all over the world, has the added advantage of providing significantly higher returns for investors than conventional p2p lending. This is due to the otherwise extortionate interest rates charged by banks and other alternatives in countries like Brazil, Venezuela and many others.
For these entrepreneurs, borrowing in bitcoin provides significantly lower repayment and interest rates as well as a safe haven from a volatile local currency which might appreciate by double digit figures on daily or weekly basis.
The global nature of it means lenders can access investment opportunities that are far flung but promising, without going through much of the red tape that arises with traditional investments.
Acclimatizing oneself to the risks and opportunities involved with bitcoin lending is a good way to get started. Investors quickly find that the risks are eclipsed by the opportunities which include lower fees, lower rates, financial stability and greater global access.
Rates in bitcoin lending can also be quite impressive for lenders, with interest rates of up to 25% on the bitcoins you lend and an expected IRR of 13%.
Stocks & Shares
Stocks and shares are the most traditional methods of investing and aren’t going away any time soon. Investors can choose from buying specific stocks or investing in funds that spread the risk across a portfolio of investments for a lower but safer return.
Many people choose to simply invest in their domestic stock market, although foreign markets are also appealing. Global investments in foreign markets is an increasingly commonplace for UK investors, with the most popular bets in recent times being the emerging Asian markets.
However evidence is now indicating that Europe and Japan may be the best markets to invest in.
Investing in Japan’s Brighter future
After a rocky few years the Japanese economy is back on the rise thanks the Bank of Japan’s decision to implement Quantitative Easing. Although inflation hasn’t quite hit the 2% target it was hoped for, according to Forbes the country’s stock market is well worth investing in over the coming year.
According to Forbes, the Quantitative Easing will continue over the next 12 months when we shall also see a fall in the Yen making for an ever bigger potential for higher profits.
Despite the slow growth and the early part of the growth cycle that Japan is currently in, it’s dedication and commitment to improving growth makes it a very good potential market to invest in. Top global investments in Japan include the retail and tourism industries.
Retail; because the consistently high quality of retail goods produced in Japan are becoming ever more popular with the burgeoning middle classes in the rest of Asia.
Tourism for the same reason; as Asia gets richer, Japan is becoming a more popular destination for those in China, India or South Korea who can now take foreign holidays. In-bound foreign tourism in Japan was up 58% this year on last year according to the Morning Star.
Europe – UK and Germany
Despite a few very bad years for the European markets, investing in the UK and Germany is currently seen as a stable option. It may not carry the high potential returns that China, Southeast Asia or South Korea have, but both offer a lot more stability.
Investing in the UK stock market is a very traditional method of investment, but that does mean that there are plenty of stock brokers who know their stuff in this market. This is a wise option for investors who want to play it safe over a long period of time.
According to This is Money, investing in the UK or European markets is certainly a smart option, but it’s only going to work for those who can wait ten years for a good level of growth.
As always property is one of the most sensible investment opportunities you can go for. In global terms it’s about finding the best property hotspots by looking at recent and future trends.
Simply plumping for basement priced property isn’t the right answer, it’s smarter to invest in somewhere that is likely to rise in value, even if it seems expensive already.
According to The Telegraph investing in high end flats in Hong Kong can only see more return in the next few years, despite existing famously high prices.
However those looking for a budget investment with a longer term rise potential should look to newcomers to the Eurozone such as Latvia whose property prices will no doubt rise as Lithuania’s have in coming years.
With low interest rates and rising rental prices, investing in a buy-to-let in the UK is still currently a good move. It won’t stay that way however, with the buy-to let market about to be more heavily scrutinized than ever before and interest rates rising next year.
Also on the rise are investments in commodities, notably precious metals, gems, oil, steel, fuel, electrics and luxury goods. With a rise in this market in recent years, some suspect that they will be a key feature of the investment market for much of the 21st century.
Whilst this market can make a lot of sense to canny investors or those in it for the long gain, it’s a highly volatile market and one that should be approached with caution.
Diamonds – The Commodity of Choice
The meteoric rise of gold investment as prices rose over the past ten years has slowed right down again, along with the risky nature of the gold market in general, it’s now one that short term investors are steering away from.
A better option for the smarter investor is now diamonds, which are experiencing a long term trend of rising prices, but are also a far less volatile market than gold. The price of diamonds has gone up tenfold since 1961.
Diamonds can be a tricky one to get into however and big returns involve large investments. Other commodities of note include fine wines, which are still on the rise for those in the know as well as natural gas.
A Balancing Act
In light of the unstable nature of the world’s economy over recent years and the effect of wars, natural disasters and fast changing economies, a key notion for global investments of the future is the idea of ‘Balance’.
Quite simply, this means not putting all of one’s eggs in one basket. Spreading the risk whether it’s across a portfolio of stocks or a portfolio of peer to peer bitcoin lending investments, is more likely to prevent the loss of large amounts of money.
For Smaller Investors
For those looking to invest a small amount of money, but still want to choose from the world’s best investment opportunities then peer to peer fiat and bitcoi lending is a sensible option.
The Cream of Global Investments Crop
From commodities such as natural gas, diamonds and fine wine to the enduring real estate market, many of these investments will be a good choice for the coming years.
Whilst stocks, shares, bonds and equities are a sound option too, they can be risky in certain foreign markets and the best possible stock markets to consider are Japan, the UK and Germany.
For those that want some control over where their money goes then peer to peer lending provides a great opportunity to feel involved, something that you can’t do with a stocks or shares fund.
Peer to Peer bitcoin lending provides lenders with an opportunity to access a huge amount of borrowers who wouldn’t otherwise be able to access these funds.
This kind of lending also does away with banking fees and other charges. When it comes to peer to peer lending, bitcoin lending may be the smartest avenue for savvy investors who are keen to access more diverse global businesses.