Business & Investment

Which asset class should I choose in 2022?

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We are about to enter the new year. If you plan to be financially successful in 2022, the New Year’s resolution is not enough. You need to have a viable savings and investment plan, including the asset classes that will be the main focus for next year.

This is equally important for investors who maintain only their equity / fund portfolio and those who invest directly in different asset classes. There are several different asset classes that both types of investors can focus on, each with its own strengths and weaknesses. However, the two most prominent in 2022 are cryptocurrencies and real estate.

2022 encryption

Bitcoin is experiencing the second consistent (and drastic) decline in 2021. It has already fallen by more than 28% from its recent peak and could stop before reaching $ 30,000, but it goes without saying that Bitcoin will reach the really expected $ 100,000 high for the year. I had a hard time getting back to the peak.

However, this may not always be a bad thing. In a sense, the Bitcoin and crypto markets are generally in the process of being modified and 2022 may be a fresh start. And if Bitcoin falls further in 2022 ($ 30,000 or less), Other cryptocurrencies Follow the leads, buying them for the next spike can help you substantially grow your capital by the end of next year.

And if you want to invest in assets instead of investing directly in them, the following crypto stocks HIVE blockchain technology (TSXV: HIVE) A good place to get started. It has already undergone some underlying crypto asset-like modifications, down more than 44% from its recent peak. But as Bitcoin and other cryptocurrencies begin to bounce back in 2022, a sharper downturn could turn into a more abrupt rise.

The HIVE blockchain peaked twice this year, once with a 200% increase and another with an increase of about 135%. This is a better growth than Bitcoin itself offers. Therefore, by purchasing crypto stocks, you will have the opportunity to enjoy extraordinary profits.

2022 real estate

Unlike cryptocurrencies, real estate has not yet been properly modified and has been postponed for a long time. But unlike crypto, it is a very tangible asset and psychologically more attractive than the very speculative and intangible ones like crypto. Therefore, real estate may seem like a better choice in almost every year, not just in 2022, even in relatively dangerous situations.

Real estate stocks are the most obvious choice, although real assets are usually too expensive for most retail investors.And you can minimize the shortcomings by choosing the following stocks Canadian Apartment Property REIT (TSX: CAR.UN), it has proved its spirit many times. He is also a dividend aristocrat and currently offers a modest yield of 2.4%.

However, a much more compelling reason to consider buying This REIT The CAGR for 10 years is 14.2%. Its value is still very attractive at this time.

Stupid takeaway

Cryptocurrencies may be a better choice in 2022, but it’s unwise to destroy real estate right away, as it has already been modified and could be even more favorable next year.If the housing market experiences a fix, the impact will be felt by housing REITs like Canadian apartments, and you may be able to trap some much better yields and put some in the bag. Undervalued stock..

Which asset class should I choose in 2022?

https://www.fool.ca/2021/12/22/crypto-vs-real-estate-which-asset-class-should-you-choose-in-2022/ Which asset class should I choose in 2022?

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