Navigating investments in 2024 – what to consider for portfolio

By Sigita Kotlere, CEO and a board member of Nectaro, a fully licensed investment platform

To review current financial situation and future strategy, firstly, everyone should evaluate current financial handedness and behavioral patterns, goals for this year and the long run along with opportunities to save and invest.

Indeed, investing can grow your long-term wealth, but you always need to understand the main rule of investments – all investment carries risk. That is why it’s crucial to improve your financial knowledge as well for smart decision-making.

Now, when it comes to where to invest in 2024, there are several options and interesting market changes that everyone can act on according to individual goals.

Here are some investment options to consider for your wealth next year:

1. Index funds: they are designed to combine various companies for a diverse range of investor types, making it a good choice to include in your investment portfolio. They offer high diversification, typically go with low entry fees, and allow everyone to choose which companies to invest in according to individual interests and values. As values-based investing becomes more important to investors, choosing this investment type could deliver it. 
   
2. Government bonds: many countries issue government bonds, which is a highly attractive investment opportunity. First, it is one of the safest and most stable investment forms, offering friendly conditions. For instance, typically these bonds enjoy tax benefits, allowing investors to earn interest without paying taxes. Second, investing in your own country contributes to the local economy, thus it is appealing for many investors across the globe to include bonds for their portfolio diversification. For example, in the U.S. the yields on 10-year government bonds have reached an impressive 4.71% in October 2023, which is almost 4% increase from three years prior, when the yields were a mere 0.87%. This signals the potential that such trajectory will hold or even grow in 2024, making it more appealing to investors. While government bonds offer a secure way to invest, peer-to-peer platforms will provide you with an alternative that is both secure and interesting.
   
3. Peer-to-peer (P2P) investment platforms: investing in peer-to-peer platforms are user-friendly, easy to navigate and offer understandable investment products. Most of such platforms have zero commissions and low minimum investment amounts, as small as 50 euros, making them accessible to individuals with limited capital. As regulatory bodies across the globe dive deeply into business, such platforms become more regulated, therefore choose regulated platforms for security and good profits.
   
4. Stocks and bonds: 2024 cannot be seen without the dinosaurs of industry. Investing in individual stocks has the potential for significant profits as it represents ownership in a company whose value can increase over time.  Bonds will assure stability and a predictable income stream. The issue here is the high entrance fee that not every investor can afford.
   
5. Cryptocurrency: despite the “crypto-winter” that market is experiencing with a significant drop, systematic cyclicity has taken over, resulting in a substantial price increase at the end of 2023. Therefore, it may play an important role in next year’s investment landscape. Even though investing in crypto might seem straightforward, success relies on a deep understanding of how to navigate it intelligently. Be prepared to delve into the market trends regularly, considering the high volatility of these assets as well as the associated risks.