{"id":27461,"date":"2017-07-29T09:05:51","date_gmt":"2017-07-29T13:05:51","guid":{"rendered":"http:\/\/www.andysowards.com\/blog\/?p=27461"},"modified":"2023-02-28T16:34:58","modified_gmt":"2023-02-28T20:34:58","slug":"how-to-invest-in-a-changing-world","status":"publish","type":"post","link":"https:\/\/www.andysowards.com\/blog\/2017\/how-to-invest-in-a-changing-world\/","title":{"rendered":"How to Invest in a Changing World"},"content":{"rendered":"<p>The most effective way to build wealth is to invest money. Putting your money under your mattress will slowly reduce your net worth, because inflation reduces the value of each individual dollar. Savings accounts are better, but their interest rates don\u2019t compare to investment. Investment, while risky, is the key to big money.<\/p>\n<p>But how can you invest when the world is changing so much? Investors in the 1990s bet big on internet firms, but the dot-com bubble burst and left many of them penniless. What if you bet on an industry that takes a major hit next year, or in 2020, or in 2025? The world is changing quickly, and it can be tough to feel comfortable betting on it. Here\u2019s how to do so safely.<\/p>\n<h3>Make a bet!<\/h3>\n<p><a href=\"https:\/\/www.bloomberg.com\/features\/2016-how-to-invest-10k\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone size-full wp-image-27465 lazyload\" data-src=\"https:\/\/www.andysowards.com\/blog\/assets\/How-to-Invest-in-a-Changing-World-1.gif\" alt=\"How to Invest in a Changing World 1\" width=\"960\" height=\"540\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 960px; --smush-placeholder-aspect-ratio: 960\/540;\" \/><\/a><br \/>\n<em>Where to Invest $10,000 Right Now<\/em><\/p>\n<p>Yes, it\u2019s hard to know which industries will grow in the future &#8211; and even when we do know, it\u2019s tough to know how <em>fast<\/em> they will grow. The internet is incredibly important these days, so investors in the 1990s weren\u2019t wrong to think that web-based companies were destined for greatness. But they missed their guess about how <em>many<\/em> of these web startups would make it big, and they overvalued companies that hadn\u2019t yet proven their worth.<\/p>\n<p>So look for industries with bright futures that you think are currently undervalued. Legal marijuana is booming in some states, and may soon enter new ones. Can you find a way to invest in that industry? Do you believe in its prospects?<\/p>\n<p>Scary as it is, making bets can be fun. If you\u2019re lucky, you could strike it rich. And if you\u2019re unlucky, you\u2019ll be protected by the next several tips in this article!<\/p>\n<h3>Hedge your bets<\/h3>\n<p><a href=\"https:\/\/www.andysowards.com\/blog\/2017\/how-the-rich-spend-their-money\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone size-full wp-image-27464 lazyload\" data-src=\"https:\/\/www.andysowards.com\/blog\/assets\/How-to-Invest-in-a-Changing-World-2.jpg\" alt=\"How to Invest in a Changing World 2\" width=\"640\" height=\"434\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 640px; --smush-placeholder-aspect-ratio: 640\/434;\" \/><\/a><br \/>\n<em>Want To Be Rich? Here\u2019s How To Spend Your Money!<\/em><\/p>\n<p>The safest way to invest is to diversify. That means having lots of different types of stocks. Imagine you were betting on the internet in the 1990s. You would\u2019ve been in trouble when the bubble popped &#8211; but you would have been in a lot less trouble if you had most of your money elsewhere, spread across other growing industries.<\/p>\n<p>Let\u2019s say you believe in a bright future for hybrid cars, legal marijuana, and companies that are based in China. Instead of deciding on one of these to bet on, bet on <em>all <\/em>of them &#8211; and you\u2019ll be in better shape if you\u2019re wrong about one.<\/p>\n<h3>Your safety net<\/h3>\n<p><a href=\"https:\/\/www.forbes.com\/sites\/trangho\/2017\/01\/04\/stock-market-strategies-why-you-should-buy-emerging-markets-now\/#63ab7b5e2051\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone size-full wp-image-27462 lazyload\" data-src=\"https:\/\/www.andysowards.com\/blog\/assets\/How-to-Invest-in-a-Changing-World-4.jpg\" alt=\"How to Invest in a Changing World 4\" width=\"960\" height=\"640\" data-srcset=\"https:\/\/www.andysowards.com\/blog\/assets\/How-to-Invest-in-a-Changing-World-4.jpg 960w, https:\/\/www.andysowards.com\/blog\/assets\/How-to-Invest-in-a-Changing-World-4-768x512.jpg 768w\" data-sizes=\"(max-width: 960px) 100vw, 960px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 960px; --smush-placeholder-aspect-ratio: 960\/640;\" \/><\/a><br \/>\n<em>Stock Market Strategies: Why You Should Buy Emerging Markets Now<\/em><\/p>\n<p>Investing in growth markets like China and growth industries like legal marijuana can lead to big returns, because those spaces have a lot of room for rapid growth. By contrast, investing in a company like General Electric won\u2019t give you much rapid growth. General Electric is <em>huge<\/em>, so it\u2019s not going to double in size. So why doesn\u2019t everyone invest in a Chinese start-up instead of General Electric?<\/p>\n<p>Because, of course, General Electric will not go out of business without warning, and it\u2019s likely to grow slowly but steadily along with the economy. General Electric and other \u201cblue chip\u201d companies are safe(r) bets, and your diverse portfolio should include plenty of them. Look for index funds that track big companies, and consider other low-risk investment options, too &#8211; like short-term bonds, which offer limited growth but low risk.<\/p>\n<p>You can also invest in alternative investments, which can help you weather a bad spell in the traditional market. Commodities like gold may hold their value or increase while stocks are taking a beating, so diversifying with commodities investments is not a bad idea.<\/p>\n<h3>Be ready for anything<\/h3>\n<p><a href=\"http:\/\/infinigeek.com\/five-ways-ensure-tech-business-survives\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone size-large wp-image-27463 lazyload\" data-src=\"https:\/\/www.andysowards.com\/blog\/assets\/How-to-Invest-in-a-Changing-World-3-1024x682.jpg\" alt=\"How to Invest in a Changing World 3\" width=\"1024\" height=\"682\" data-srcset=\"https:\/\/www.andysowards.com\/blog\/assets\/How-to-Invest-in-a-Changing-World-3-1024x682.jpg 1024w, https:\/\/www.andysowards.com\/blog\/assets\/How-to-Invest-in-a-Changing-World-3-768x512.jpg 768w, https:\/\/www.andysowards.com\/blog\/assets\/How-to-Invest-in-a-Changing-World-3.jpg 1280w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/682;\" \/><\/a><br \/>\n<em>Five Ways To Ensure Your Tech Business Survives<\/em><\/p>\n<p>As you can see, there are two keys to investing in our ever-changing world: attempt to anticipate change, and protect yourself in case you fail. Your big growth opportunities will come with bets you make on growing markets and industries, but remember that the majority of your money should always be in other investments. You should own risky stocks, safer stocks, some bonds, and some alternative investments, if possible. By spreading out your risk and making bets at the same time, you can enjoy the benefits of our changing world without laving yourself too exposed to risks.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The most effective way to build wealth is to invest money. Putting your money under your mattress will slowly reduce your net worth, because inflation reduces the value of each<\/p>\n","protected":false},"author":1,"featured_media":27462,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"footnotes":""},"categories":[109,5695,5633],"tags":[5891,6003,4906,6915,696,6909,988,6134,574,6412,277,6913,6912,6908,5491,6914,6551,533,6019,6911,573,6910,452,443],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Invest in a Changing World<\/title>\n<meta name=\"description\" content=\"The most effective way to build wealth is to invest money. 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