Top investment tips for 2022

Top investment tips for 2022

In terms of economic certainty, the 2020’s haven’t really been the best decade so far for reliable economic circumstances in which to place bets on.

The hardest aspect of wealth isn’t necessarily acquiring it, but actually keeping hold of it and attempting to grow it. Let’s look at an example – with inflation running somewhere in the region of 5% you know that without action, you’ve already lost 5% of your wealth over the course of a year by just sitting on it.

As countries across the world come to terms with the economic damage and subsequent recovery, there are a number of challenges ahead and different countries are recovering at different paces.

The UK, for example, ranks fairly low in comparison to the US and some European counterparts, but on the other hand, the country is in a much more advanced position in terms of lifting restrictions and navigating shifting priorities and a rising cost of living.

With all that in mind, what are our top investment tips for this year?

Keep your eyes on Russia and Ukraine

This one might seem a little ambiguous in its relationship to the investment world, but we’re already seeing the impact it’s having on global markets, not just in the energy markets where wholesale prices are rocketing, but also in stocks and shares.

Investors, classically, don’t like global uncertainty and with tensions rising rapidly in Eastern Europe and beyond, a battle of brinksmanship between Russia and NATO probably ranks pretty low on a list of things investors would like to see.

If things are resolved and tensions eased then expect to see global equity markets turn buoyant pretty quickly, but if things drag on then this could pull down markets with it.

Look at value investing

Broadly speaking, the past few years have seen many people pushing the merits of rapid growth in investing, whether that be through crypto or NFT investment, or the attention that tech stocks like Tesla, Apple, Netflix and others have garnered through very fast growth.

It’s not to say that they definitely won’t have another great year, but the time of rapid growth seems to be over and something of a correction is likely taking place in their stock prices, which many consider to be overpriced.

Consider UK property

Here comes the sensible advice then – if you’re looking for sustainable growth and safe assets then there really isn’t anything else available out there at the moment quite like UK property.

In some ways, similar to our point about hyper-growth, don’t expect UK buy to let or residential property to have another year growing between 10% and 20%, it’s not likely.

More likely is that the market will revert to pre-pandemic levels where growth is between 5% and 8%.

This is something we talk about quite regularly, but in a similar manner to value stock investing looking at dividend incomes, property offers not just inflation-busting value growth, but also a passive income too.

With the market seriously struggling to provide enough new stock to meet demand, it’s more than likely that rental demand will continue to grow along with rental prices.

Value is likely to be the watchword in terms of investment this year, and you can’t really beat UK property in that aspect. Take a look at some of our available investment properties here!

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