5 Assets Worth Investing In This Year

With the economy facing continued uncertainty, many investors are looking for assets that can provide stable returns in 2024 and beyond. Choosing assets with long-term growth potential, even during volatile markets, can set your portfolio up for success. 

Here are 5 assets worth considering adding to your portfolio this year:

Property

The UK property market has shown resilience over the past couple of years. Despite rising interest rates and the cost of living crisis, demand continues to outstrip supply in most areas. Both residential and commercial real estate can provide regular rental income along with the potential for capital appreciation over time. 

Focus your search on properties below market value in promising locations and view any investments you make as long-term, in order to maximise your returns. 

Dividend Stocks

During uncertain times, dividend stocks allow investors to generate a steady passive income stream. Companies with strong cash flows and long track records of dividend growth tend to outperform the broader stock market over longer time horizons. Leading UK dividend stocks include the FTSE 100 stalwarts BP, Rio Tinto and British American Tobacco. 

Gold

Gold has served as a hedge against inflation and geopolitical tensions for centuries. With inflation in the UK reaching decade highs and the Russia-Ukraine conflict showing no signs of abating soon, allocation to gold in a diversified portfolio seems prudent.

Gold can be purchased in various forms from dealers, including jewellery, gold coins and bars, gold ETFs, gold mutual funds as well as gold mining stocks. When buying physical gold, ensure to get quality hallmarked products only and watch out for making charges. Also, investing a small portion of your portfolio in gold from Bullion Giant provides sufficient exposure without overwhelming overall asset allocation.

Index Funds

For broad market exposure across various stocks, sectors and geographies, low-cost index funds are hard to beat. FTSE 100 and S&P 500 index funds from providers like Vanguard and iShares are cost-effective ways to invest in the world’s leading large-cap stocks. The passive investing approach and built-in diversification make index funds ideal core portfolio holdings. Index funds also help mitigate individual company risk since poor performance by one firm represents only a small portion of the overall portfolio. They provide investors with an easy hands-off approach to match market returns over the long run. 

Choosing index funds that track benchmarks like the S&P 500 and FTSE 100 allow exposure to the world’s top blue chip companies.

Bitcoin

Despite its volatility, Bitcoin has greatly outperformed most conventional assets over the past decade. Increased adoption of digital assets by institutional investors and growing cryptocurrency regulation have helped legitimise the space. 

Bitcoin remains the dominant coin with the largest market capitalisation. But invest only an amount you can afford to lose completely as risks abound. As the first and most well-known cryptocurrency, Bitcoin enjoys the most mainstream credibility and trust. However, investors should be prepared for drawdowns of 80% or more if history is any guide. 

Selecting a secure crypto wallet and exchanges with robust security features is vital when buying Bitcoin.

Finding assets that align with your risk tolerance and investment timeline is key for any portfolio. A prudent mix of income-generating real estate and dividend stocks along with an allocation to gold, index funds and Bitcoin can help weather uncertain markets. Consult a financial advisor to develop a balanced asset allocation tailored to your specific needs and goals.