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RE: Steem Bounty - Your 1 Million Dollar Portfolio for 1 Year - How Would You Diversify? Cash, Real Estate, Gold/Silver, Stocks and Crypto

in #investing7 years ago

None of the above I'm afraid. For me it would be a three-way split:

  • 50% Crypto
  • 30% Gold
  • 20% Real estate

Gold and Real Estate don't appreciate fast. Looking at an investment time of one year, I would expect little to no appreciation in value from these two asset classes. BUT - they are both very secure long-term markets.

Gold is limited in supply. With modern money being fiat in nature, gold has been removed from the money equation. Gold reserves are being jealously hoarded by the super-rich, making them difficult to obtain and consequently valuable. The long-term gold price movement is always positive. You can't go wrong with gold if you are looking at holding for a decade or more.

Property is similar to gold, and a good way to hedge your bets. Secure, stable and always in demand. The explosive growth of global population will continue to drive up property prices. It's another great hold if you're looking at investing for a decade or more. The great thing about property is that it can also generate income (in the form of rent), but it's less liquid than gold and impossible to physically move around (which might be a nice option to have in the case of e.g. a hurricane/riot/wildfire/earthquake).

If you want ROI then you can't beat crypto, you just cant. Especially if you want it within a year. the obvious downside to crypto is volatility and market uncertainty as it is still so new. Of course it is this "newness" that also works in it's favour. Because the majority of the population have yet to even touch it, it has enormous growth potential. The longer you hold, the more it works in your favour too (because it compounds and the effects of volatility are also evened out). But holding crypto alone is too risky if you want a return within a year - crypto can (and has previously) dropped in value over the space of a year. That's where the gold and real estate come in - to secure at least half your investment.

Cash is a terrible way to store wealth. Unless your surname is Rothschild, you'll spend that year fighting the effects of inflation. Hold cash and you'll end up with less than you started with. Obviously a bank account can earn you a little interest, but only about enough to just keep up with inflation. Maybe.

Stocks will not make you a decent return within a year. they are basically fast becoming the old world dinosaurs that crypto is replacing. Bye bye stocks.