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Sunday, December 10, 2023

7 Ways to Invest Your Hard Currency in 2024

Hard currency typically refers to globally traded currency ↗ like the US dollar, pound sterling, Swiss franc, or euro.

With economists predicting rising inflation ↗ and volatility still impacting investments, holding hard currency remains a wise move in 2024.

If you want to put your hard currency to work for you ↗, these 7 investment avenues can generate solid returns during global uncertainty.

High-Yield Savings Accounts

While interest rates remain relatively low, several online-only banks and credit unions now offer high-yield savings options paying over 2% interest in 2024.

This provides a no-risk way to earn steady returns on any extra hard currency like pounds, or dollars, you have in cash. Regular transfers and compounding interest causes these nest eggs to grow rapidly.

Blue-Chip Dividend Stocks

Investing a portion of your cash in mature, multinational corporations with established dividend track records will provide quarterly cash payouts and steady portfolio diversity.

Focus on those paying over 3% dividend yields with room to increase payouts over time. Leading consumer giants and utilities tend to outperform during uncertain markets.

Treasury Inflation-Protected Securities (TIPS)

Purchasing TIPS directly from the US government provides protection against inflation eating away at the spending power of your dollars.

As official inflation rises, the principal value of TIPS adjusts upward resulting in higher interest payments. TIPS with 10+ year maturities make inflation worries a non-issue.

Real Estate Investment Trusts (REITs)

REITs allow small investors to participate in lucrative real estate markets without huge capital outlays.

Strong REITs own diverse property portfolios with historically high occupancy delivering increasing rental income to investors through dividends.

Exposure to commercial and residential property provides hard asset diversification.

Hard Currency-Denominated Bonds

Government and corporate bonds issued in hard currencies like the Swiss franc allow fixed income with reduced exchange rate risk and low volatility.

Focus on short and medium duration bonds from financially healthy issuers in countries with positive economic outlooks. Laddering bond maturities results in a steady income stream.

Global Equity Index Funds

Equity index funds provide instant diversification and participation in stock markets worldwide.

Opt for low fee funds tracking leading indices like the S&P 500, FTSE 100, or EuroStoxx 50.

Regular monthly investments in broad index funds smooth out short-term volatility for long-run growth.

Gold and Silver

Physical precious metals represent the ultimate hard currency, retaining value over thousands of years.

Adding small gold and silver coin holdings to your investment mix provides an inflation hedge and crisis hedge diversified from financial markets.

Monthly dollar cost averaging into gold/silver ETFs also creates hard asset exposure.

Stay Strategic With Your Cash

Keeping a portion of your net worth in accessible hard currency savings provides stability and optionality heading into 2024.

Strategically investing the rest into a diversified mix of these assets builds a fortress portfolio designed to weather uncertain times.

Monitor your holdings regularly, and remain ready to capitalize on emerging opportunities. The new year promises profitable possibilities for savvy investors who stay nimble.

Michael Maren
Michael Maren
Former marine biologist who likes to spend as much time in the tropics as possible, due to a horrible time I once had in Alaska. Brrrr.

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