Where to invest in 2021? Everyone agrees that this will be the year of economic rebirth after the pandemic and there will be many opportunities to make money by making wise investments. The advice from Wall Street analysts is clear: they believe the best way to invest this year will be to buy stocks.
Making your money work, making money by investing is always complicated; below, you will find advice on how and where to invest our savings by competing for capital risks, but always looking for the solution with the highest return. So how to start a credit card processing iso? The options have come up perfectly.
But shares are also back in fashion in this period, especially the shares of Italian companies of excellence, securities that we often observe on this site as they are closer to us and easily ‘controllable’ by the investors themselves. Finally, there are investments for the more experienced, made through Online Transaction.
- Issuer bankruptcy risk, which for governments takes the form of country risk and therefore country default risk.
For fixed rate bonds, Interest rate risk, which is the risk that the interest rate will fall? The Duration, that is the financial duration of the investment, is an indicator used to measure the sensitivity of the bond to changes in interest rates. As the T of interest increases, the price decreases and vice versa. Among government bonds, we pay particular attention to supranational and inflation-indexed ones.
Supernational: in this case the credit risk is practically nil, but the interest rate risk and the risk of reinvesting the coupons at a rate lower than the initial one is always present. In addition to these we must focus on the issue currency. These instruments often offer particularly attractive returns because they are issued in emerging currencies. In these cases, obviously, the exchange rate risk, ie the depreciation of the currency, can also significantly erode the return on investment.
- Indexed to inflation: These are products whose coupons and nominal value at maturity are calculated taking into account the inflation level of the reference currency area, therefore in addition to the specific risks of the bond instruments, the risk must also be considered. of the inflation rate, hence the risk of a reduction in a reduction in inflation which would therefore lead to a lower yield on the bond.
Banking: is a corporate product that allows the holder to access the creditor status of the credit institution. They can be senior or subordinated; certainly the senior instruments are safer, as the holder will participate in the losses only after the shareholders and subordinated bondholders.
Sometimes bank transactions are not particularly liquid and this can generate difficulties for the investor who wants to liquidate the asset due to problems related to lack of transparency, therefore the impossibility of identifying the transaction price in the secondary market, especially in the event of negative events for the bank.