In This Economy? Here’s How You Could Invest $20,000 Right Now
Key takeaways
- ETFs offer diversification and a simpler way to track market performance
- Individual stocks can be fun, but shouldn’t take up a lot of your portfolio
- Bonds have offered attractive returns so far in 2023 thanks to higher interest rates and an uncertain economy
Ever wondered how you should invest a chunk of change like $20,000? It’s a great amount to get started with your investing journey, but the process can be overwhelming. We’ve got some options below for getting started on the stock market and generating returns.
AI investing demystifies the process of entering the stock market. Q.ai’s Foundation Kits, designed around diverse themes like tech and global trends, provide varying risk levels to accommodate every investor. Once the AI predicts the top performers, it rebalances each Kit’s holdings weekly to ensure optimal returns.
Download Q.ai today for access to AI-powered investment strategies.
Your $20,000 investing strategy
Go for ETFs
Exchange-traded funds (ETFs) are a quicker and easier way to get the diversification you want while still making returns. The price of ETFs works like a regular stock, but they hold a basket of different assets instead of one individual company.
ETFs track market performance rather than look to outperform it so that they can be lower on fees, and the diverse asset basket creates more flexibility for you.
You can find an ETF for pretty much whatever you want, depending on your interests and risk appetite. Right now, the top three ETFs by trading volume are the ProShares UltraPro Short, the ProShares UltraPro, and the SPDR S&P 500 ETF Trust.
Individual stocks
If you’ve got an undying love for a particular company’s stock, or you predict certain businesses in a growth sector could be set to outperform, then you can invest in individual stocks on the market. We understand the temptation — Nvidia, a top performer on the S&P 500 this year, has gained close to 200% this year alone.
We’d recommend only a small portion of your portfolio be dedicated to individual stocks because it’s pretty much impossible to try and time the market. If you do want to go ahead, make sure you do your research first on the company’s financials, including revenue, cash flow and debt levels.
AI investing can make this approach much easier. Q.ai’s Kits take care of the research side of things and let you invest without the upfront work.
The bonds market
Bonds have so far been a decent investment option in 2023 because yield rates have increased as investors look for safe havens amid an uncertain economic landscape. Of course, that’s no guarantee they’ll stay that way.
Bonds work by loaning your investment to the U.S. government, which pays you back with interest until the bond matures.
With two-year yields currently at 4.94% and ten-year yields at 3.84%, this often overlooked investment option provides low-risk returns at decent rates.
The bottom line
If you choose all three strategies outlined above, your $20,000 investment could be in pretty good shape. It’s important to remember the market fluctuates, and you should focus on growing long-term gains rather than pulling out your money as soon as there’s a dip.
Not to mention, AI investing makes accessing the stock market much simpler. Q.ai’s Foundation Kits are themed on different topics, like tech and global trends, with different risk profiles to suit any avid investor. After the AI predicts the top performers, it recalibrates each Kit’s holdings to help ensure maximum returns.
Download Q.ai today for access to AI-powered investment strategies.
