The famous quote of Bob Dylan: There is nothing so stable as change should definitely illustrate the current economic situation. The world's largest market, the forex market, the cryptocurrency, the prices of real estate, the companies, and everyone has been affected by the recent economic changes.
Jumps in energy and food prices pushed inflation in the 19 countries that use the euro to the highest annual rate recorded since the currency was created.*
With the increasing cost of living, everyone should look for ways to protect their purchasing power. So, let's briefly look at the current situation of the most popular investment options and answer the question of which option is the smartest nowadays.
Stock market
The S&P 500 faces a new closing low for 2022. Unfortunately, many economists and investment advisers say that the more significant increases should continue for a while.
After a brief recovery this summer, the S&P 500 continues for its third quarter of losses — something that has not happened since the global financial crisis in 2008. It could take even years before a market becomes relatively stable. Unfortunately, investing in the stock market and getting some profit could be very challenging for a while. As a result, the drop to a new low shows how uncertain the investors' environment has become.
Bonds
Accordingly, there are no positive signs regarding investing in bonds too. The world's largest bond market is being whipsawed by its longest volatility since the financial crisis too. There could not be stability in investing in bonds, as the long era of historically low interest rates is over now.
After all, could we expect this situation to fade anytime soon? Unfortunately, as inflation is still running at a four-decade high, the interest rates are aggressively raised it isn't easy to see any positive signs for the nearest future.
Cryptocurrency
Finally, some investors who prefer alternative investment options and invest in the cryptocurrency have noticed that crypto has been unprofitable for most of the time recently. It provided the volatility and excitement craved by traders before the pandemic. Also, it has appeared far too risky during the current uncertainty.
Although, we can see the tendency that, for instance, bitcoin has stayed mostly the same over the last month. That's significant because its stability came when other assets, including gold, foreign currencies, and stocks, plummeted. However, experts unanimously agree that cryptocurrency needs more time before it breaks free of stock prices. Thus, investing in crypto remains a very unstable option too.
P2P platforms and HNWs
Despite the unstable economy, we should keep investing in outplacing inflation and saving money. Undoubtedly, investing in consumer loans on trustworthy P2P platforms could steady investment portfolios in this shaky market. For this reason, hive5 has noticed increasing popularity among HNWs (high-net-worth individuals) investors, thus, our platform could be called a very reasonable choice. One of HNWs is an investor from Lithuania, Domas Dargis, who has invested on hive5 and is satisfied with the investment processes on the platform.
Investing on P2P platforms objectively could be called a very wise choice nowadays. Firstly, HNWs and other investors prefer to invest in consumer loans on hive5, as there won't be any unexpected ups and downs, unlike choosing other investments, where the returns depend on market performance. Finally, you could expect regular income, and it is easy to withdraw money in a short time if needed. Thus, especially now, we cannot find any other investment choice more reliable than most P2P platforms.
Hive5 offers to invest in stable consumer loans from Poland and earn up to 15% annual return.
* https://www.nytimes.com/2022/09/30/business/eurozone-inflation.html
Other used sources:
https://www.cnbc.com/2022/09/25/stock-market-futures-open-to-close-news.html
https://www.bloomberg.com/news/articles/2022-10-12/what-dimon-s-easy-20-drop-in-the-s-p-500-from-here-looks-like?leadSource=uverify%20wall
https://time.com/nextadvisor/investing/cryptocurrency/bitcoin-crash-continues/