Here’s How You Could Invest $100k in the Turbulent Markets in 2023

Key takeaways

• The grim economic outlook has changed investment strategies to hedge against losses
• Best options for investing $100k right now would be to diversify as much as possible, consider alternative investments and take a long-term view of the market
• You can make the process easier with AI investing tools

With higher inflation globally, a Congress-created debt-ceiling crisis in the US and higher interest rates to contend with, the investing picture is looking very different to what it did just a couple of years ago. As a result, it needs a different approach to protect your portfolio and make the most of your investments. Here are some options for investing $100k in the turbulent markets today.

High inflation doesn’t have to mean it’s game over for your portfolio. Q.ai’s Inflation Protection Kit uses AI to find the assets that are outperforming or matching high inflation, then it reallocates the Kit’s holdings as required to help you build wealth in a tricky economy.

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Potential options for investing $100k

There are a few ways to go about investing a lump sum in the markets right now — let’s take a look at them.

Diversify across the stock market

Putting all your eggs in one basket with one company or sector is never a good idea, because you’re overexposed to dips and declines. Instead, you could invest $100k across a mix of companies and industries — especially ‘recession-proof’ sectors like utilities and consumer goods.

Adding in some new sectors to increase diversification in your portfolio can help your investments weather the storm rather than praying for rallies and hoping for the best. Not to mention, AI investing can make it even easier for you.

Look at ‘safe’ alternative assets

Bonds are always what investors flock to when the economy is tanking as they’re considered much less risky assets. They don’t usually spike or drop massively, but that’s a good thing in a tricky economic situation.

Another option is gold and other precious metals, the former of which tends to hold or increase its value when the dollar is strong. These types of alternative investments, alongside a balanced portfolio, can reap rewards in the long run.

Take a long-term approach

It’s definitely exciting to see the likes of chip maker Nvidia cause such a wave in the stock market that dozens of other AI-related companies benefited from the rally, but this is an exception rather than the rule.

In difficult economic periods, it’s best to take a long-term view and expect to see some dips in the market. Rallies will come and go, but timing the investments is difficult at best and disastrous at worst. Investing with a long-term view rather than searching for short-term gains is therefore the best approach.

The bottom line

There’s no right or wrong way to invest $100k — these are just some simple tips to help you build wealth without massively overexposing your portfolio to risky situations. You can make the whole process easier with AI investing, too.

Want to invest in the global economy, but don’t know where to start? Q.ai’s Global Trends Kit holds stocks and bonds, commodities and forex to help you build wealth with a macroeconomic twist. The AI finds the best-performing assets by scanning the data, then shifts the Kit’s weightings to help you maximize your investment.

Download Q.ai today for access to AI-powered investment strategies.