Investing is one of the best ways to build wealth over time. There are many different ways in which investing can be used to accomplish various financial goals. However, many people are unsure of how to invest their money in a way that will yield a positive return. The good news is that there are many different investment opportunities for people who are interested in taking advantage of them. Here are some of the top investments you should look out for in 2016.
In 2015, Netflix has been one of the best stocks of the year. Many people are surprised at just how rapidly the stock has grown over the past couple of months. Due to its high growth rate, Netflix trades at a high price to earnings ratio. However, it really is not out of line with other companies that are in the same sector of the economy. Anyone who is looking for an exciting stock to purchase should choose Netflix. Not only has it made a nice run, but the stock still has a lot of upside with all of the potential growth that the company has on the horizon.
The price of crude oil is one of the biggest stories of 2015. Over the past couple of months, the price of oil has continued to drop rapidly. Although this may seem like a good thing to the average investor, there are many things to consider with this drop in price. There are a lot of oil companies that are heavily leveraged to the price of oil. This means that they make a lot of money when the price goes up and lose a lot when the price goes down. If you are someone who can afford to take a risk, buying an oil company at this level could be a really good idea. Over the long term, the price of oil tends to rise. Buying at this level could be like buying a home during the housing crisis just a couple of years ago.
Final Investing Advice
Every year there are plenty of different companies that can be purchased for a solid gain. It is vital to do some homework on the front end in order to earn a high return later on. The stock market can be intimidating at first, but there are a lot of gains to be made over the long term.
David Milberg is an investment banker from NYC.