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10 Different Types of Investments to Make in 2024

Some analysts expect the U.S. economy to dip into a recession, while others expect the economy to cool but continue to grow. The market anticipates rate cuts, artificial intelligence (AI) is reshaping the playing field, and challenges with supply and demand continue to hang on.

It all adds up to economic uncertainty. However, while not ideal, it’s no reason not to invest, especially if you have a long-term perspective.

What Investing Does for You

Investing grows your wealth. It can provide income, build your retirement nest egg, and help you out of a financial bind. While there are potential gains, they come with potential risks.

Still, if you have the means, an emergency fund in place, and can withstand the ups and downs without needing to siphon off money, this year is as good as any to put your money to work for you and invest. This article lists ten asset classes to consider for investing in 2024.

1. Growth Stocks

Stocks for technology and communication services stocks are among the fastest-growing companies. While uncertainty and interest rates continue to fuel volatility for tech stocks, companies with innovative products and services can offer the potential for long-term gains.

2. Value Stocks

Companies with strong fundamentals for earnings and revenue might not catch the eyes of investors and trade at prices lower than their value. With the possibility of rate cuts this year, some value stocks — in tech, utilities, and consumer goods — might benefit and could be a potential investment opportunity. 

3. Small-Cap Stocks

Small company stocks have underperformed previously but may be better positioned over larger companies to take advantage of the disruption caused by AI and other innovations.

4. Large-Cap Stocks

These are big-name, well-known stocks of the S&P 500. These days, large-cap stocks are led by tech companies—Apple, Google, Meta, and others—which outperform other large-cap stocks. But if you’re a long-term investor, even long-established companies in this category continue to show resilience against market volatility. 

5. Stocks

International stocks have lagged behind U.S.-based companies. However, whether they are businesses in developed or emerging countries, they can help diversify your portfolio. Some analysts like international stocks because they might be undervalued and have shown the ability to resist fluctuations in the global market.

6. Dividend Stocks

Dividend stocks have continued to underperform growth stocks because many big tech companies don’t pay dividends, and the S&P 500 is weighted toward tech giants. However, dividend stocks can offer you reliable income and hedge against the volatility of other stocks. Many of the largest and best-known U.S. companies pay a dividend—a portion of a company’s profit — and you still have the potential for the company’s stock to appreciate.

7. Funds

If you’re new to investing, you likely hear “fund” and think about mutual funds and maybe your 401(k). Mutual funds are always an option for investing, but there are also money market, exchange-traded, and index funds to consider.

8. Bonds

A bond is a relatively safe investment vehicle if you’re looking for somewhere safe to park your money. However, with the lower risk comes lower returns. A bond is a loan from you to a government entity (federal, state, or municipality) that lets you earn a fixed interest rate over a fixed period. Corporate bonds can provide the potential for higher returns, but they also have a higher risk.

9. High-Yield Savings Account

Though not an investment vehicle, a high-yield savings account can pay you higher interest than traditional checking and savings accounts. This account also could be an excellent place to build your emergency fund or save for a significant purchase, such as a house.

10. Alternative Investments

As volatility and rising interest rates became the norm in recent years, many investors began turning to alternative investments: hedge funds, real estate, real estate investment trusts, precious metals and other commodities, collectibles, and more.

Alternative investments—not traditional stocks, bonds, and cash—can diversify your investment portfolio and give you the potential for higher returns. However, they tend to be riskier and harder to turn into cash quickly than typical investments.

Work with a Financial Advisor

Whatever type of investment you choose, interest rates, market disruption, and volatility should not keep you and your money on the sidelines. Consulting with a financial advisor can help you find the right investments for your long-term financial future.

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