After a bout of high inflation and the Federal Reserve rapidly raising interest rates in 2022, investors may be reeling. Stocks spent most of the year in a downturn, even entering a bear market, and with a recession seemingly on the way, investors may think there’s no good place to invest. But extend your investing horizon, and 2023 could set you up for good returns later on.
So what are the best investments for this year?
The list below starts with safer picks and then moves on to those that should deliver higher returns but may be more volatile, giving you a healthy mix of growth and safety during what looks like a difficult market environment.
Why invest?
Investing can provide you with another source of income, fund your retirement or even get you out of a financial jam. Above all, investing grows your wealth — helping you meet your financial goals and increasing your purchasing power over time. Or maybe you’ve recently sold your home or come into some money. It’s a wise decision to let that money work for you.
While investing can build wealth, you’ll also want to balance potential gains with the risk involved. And you’ll want to be in a financial position to do so, meaning you’ll need manageable debt levels, have an adequate emergency fund and be able to ride out the ups and downs of the market without needing to access your money.
There are many ways to invest — from very safe choices such as CDs and money market accounts to medium-risk options such as corporate bonds, and even higher-risk picks such as stock index funds. That’s great news because it means you can find investments that offer a variety of returns and fit your risk profile. It also means that you can combine investments to create a well-rounded and diversified — that is, safer — portfolio.
Below are the list of the 10 best investments in 2023: CLICK each link to read into details
1. High-yield savings accounts
2. Short-term certificates of deposit