We get it — it’s been a bumpy ride recently, and maybe you’re not quite in the mood for Valentine’s Day. 2022 was a wild year for investors, and it’s possible that you’ve fallen out of love with some of your investments. But that doesn’t mean it’s time to throw in the towel. Instead, we’re here to tell you where you might want to look for love next.
(Of course, this is all just for consideration. Just like your love life, investing is a personal process. There are more factors to consider than just these when building your portfolio.)
If you’re ready to dump your stocks…
- Because you need something that can be there for you through the highs and lows, you might want to explore options. Stocks are great… if you think the market is going to move up. But options can be great if you think the market might go up or down. If stocks are bumming you out right now, maybe try options for more… options.
- Because you want something a little… younger, you might want to explore crypto. While cryptocurrency is still very much the “new kid on the block,” it becomes more and more mainstream every day. In fact, some of the older cryptocurrencies seem to follow the market more closely with every passing year, and regulation could mean an even closer connection.
- Because you just need a little more diversity in your life, you might want to explore ETFs. If you haven’t been diversifying, it’s likely your stocks have seen some wild swings up and down. ETFs can expose you to a bunch of different assets with just one investment, which could help smooth out some of that volatility.
EXPLORE ETFS
If you’re ready to dump your crypto…
- But you still want some contact with your ex, there are stocks and ETFs that can expose you to crypto and the blockchain without being directly invested. That way, you can diversify your portfolio while still being connected to your old flame. If you have specific crypto-adjacent companies in mind, try looking into individual stocks. But if you want general exposure, there are ETFs that could scratch that itch.
- But you love the thrill of the chase, you might want to explore options. Options are a high-risk investment vehicle that allow you to invest a little money for an opportunity at huge gains. The downside? You could lose your whole investment… but it’s usually only a fraction of what you might put down for the same amount of stock*.
EXPLORE OPTIONS
If you’re ready to dump your ETFs…
- Because you’ve gotten a little more particular, you might want to pick your stocks individually. ETFs are sometimes chosen because they offer a lot of diversity with just a little bit of effort. But if you like feeling like you’re fully in control, you might want to explore picking your own stocks.
- Because you need something that can lift you up when you’re feeling down (or make the good times better), you might want to explore options. Just like stocks, ETFs are great… if you think the market is going to move up. But options can be there for you whether the markets move up or down — if you make the right investment. If ETFs are bumming you out right now, there are other options available.
- Because you’re looking for something more exciting, it might be time to explore crypto. Maybe you invested in ETFs because someone told you they were responsible, and now you want to loosen up a little. Crypto is famous (or maybe infamous) for spiking high and low, so if you want a little more thrill in your portfolio, it might be time to explore this direction. (Just remember — thrill comes with risk!)
If you’re ready to dump options…
- But you love the highs and lows in your relationship, you might want to explore the many types of crypto out there. Just like options, the crypto investing can be pretty volatile. Unlike options, the timespan for investing can stretch much longer. So if you need a break from the day-to-day trading, crypto is one asset you could explore.
- Because you’re looking for something more long-term, you might want to explore ETFs. They’re usually a staple of long-term investment plans, like retirement accounts. That’s in part because they’re a simple way to diversify, and diversification could mean a less bumpy ride throughout the market. If you’re tired of having to be so hands-on with your trading, ETFs might be a simpler choice.
- But you really like following a company’s story, you might want to explore a plain old stock. Especially if you plan to be in it for the long haul. Since options have expiration dates, you’re limited on how long you follow the story for before you make another investment. With stocks, you can sign up and watch the story unfold for as long as you like.
Rediscover your love for investing
Don’t just settle because you’ve only ever known one asset class. You should want the best for your portfolio, just like you want the best out of a partner. Exploring new asset classes and diversifying are great ways to make sure that your portfolio is really what you want it to be.
*There are certain edge cases in which you may be exposed to greater loss than your initial investment. Although these instances are rare, they can occur.