2023 has dawned with one word on everyone’s minds: recession. From predictive analytics to experienced influencers, everything and everyone is gauging the possibility of a severe market pullback in the coming months. But we don’t feel that way – especially within the circles of entrepreneurs and financial entrepreneurs.
Understand that investing still goes on. Investors continue to look for safe bets and solid returns in a market that has remained turned on its head ever since the early days of the COVID-19 pandemic nearly three years ago.
If you’re looking for potential investment opportunities in the days ahead, here are a few options to consider.
Disclaimer: These are merely suggestions. They aren’t guaranteed any level of success, especially in the short-term. However, each has its merits and potential risks and rewards as a legitimate long-term investment opportunity in 2023.
1. Add Stability With Real Estate
Few people who invest in multiple real estate properties end up selling them in a hurry –- and with good reason. Real estate is the investment gift that keeps on giving.
Given enough time, most real estate will appreciate in value. In addition, options like renting and flipping properties add additional profit potential.
The real estate market was in a unique space the last couple of years, with buyers sitting firmly in the driver’s seat. However, the professor of finance at Creighton University’s Heider College of Business, Robert Johnson, predicts (via Bankrate) that 2023 will flip the script. Johnson says, “It will be a buyer’s market next year, as many reluctant sellers – those waiting for the market to turn around – will likely capitulate, adding to more housing supply.” If this happens, it could open many ideal opportunities for savvy investors.
2. Align Investing With Your Lifestyle
2023 may be a challenging year to turn a profit. Market unpredictability and major economic turmoil may leave many investments wallowing for months and even years to come.
One way to circumvent this possibility is by tailoring your entire investment strategy to focus on lifestyle investing. In other words, what investments reinforce the lifestyle that you’re striving to attain both now and in the future?
Lifestyle Investor, Justin Donald, points out that it’s critical to approach lifestyle investing holistically and with a long-term perspective, “You have to think about what you value in life as a father, husband, entrepreneur, and businessperson, and you ask yourself, what do you want ten years from today? Usually, the easy and best answers are not always the same.”
Generating wealth for its own sake is an empty task. Make sure to align your investing with values and priorities that serve your lifestyle. That way, you can remain confident and emotionally calm as you weather the ups and downs of an unstable market.
3. Stock Up on Stocks
2022 was a brutal year for the stock market. Things like the war in Europe, inflation, interest rate hikes, and a resurgence of COVID-19 in China have weighed heavily on the markets. Collectively these have led to the first yearly drop in all three main stock indexes since 2018.
In the year ahead, things could get even worse. But that doesn’t mean investing in stocks should be off the table. On the contrary, dips are historically ideal times to buy into the market. However, the way you do so will be a major factor in the success or failure of your investment.
For instance, you should always buy a company rather than its stock. The volatile price of meme stocks like Game Stop and AMC in recent years have shown how dangerous it can be buying a stock based on its ticker symbol.
Instead, do your homework and invest in solid, dependable stock options backed by well-run businesses with plenty of potential. You can also invest in mutual funds and index funds to spread your risk and avoid unnecessary losses. Dollar-cost-averaging throughout 2023 is also a good way to avoid a sudden loss while still setting the stage to ride a market rise in the future.
4. Consider Energy Stocks, Too
Energy is on everyone’s minds. Wind and solar are in the spotlight. Propane has become a big deal. But oil remains the most important factor to the world as everyone grapples with the reality of losing Russian oil production in the West.
The question is – do all of these fluctuations present an opportunity to invest in the energy sector? The answer, according to the investment experts at Motely Fool, is a resounding maybe.
The investment advisors highlight that oil stocks are anything but a certain bet at the moment. They add that Pioneer Natural Resource’s reduction of its oil-linked dividend is a good example of this unpredictability in action.
And yet, Fool concludes that oil (and energy, in general) remains a successful place to invest — especially as part of a well-balanced portfolio. There are multiple companies, like Exxon and Chevron, that offer stable, well-known investments with predictable dividends.
Finding Quality Investments in 2023
There are many ways to invest in the modern market. However, ongoing questions, future concerns, and the sheer quantity of options available can be debilitating.
Make sure to take the time to consider each investment opportunity (including those above) on its own merit. Do your homework and evaluate how it can impact your specific portfolio.
There’s little doubt that the year ahead will come with lots of risk (and consequentially, plenty of correlating opportunities). Take the time to set the stage for your success – and build a balanced portfolio. You’ll keep yourself in a place to minimize risk, but take full advantage of opportunities as they come along.
