Best Investments for 2020

With several investment options, it is important to know which sectors will be profitable for investors in 2020. Here, we take a look at some of the best investments for 2020. Rather than predicting or expecting anything, it is better to have a diversified portfolio that includes stocks or ETFs. For municipal bonds, the supply and demand appears balanced.

In stocks, it is advisable to invest in the health care and technology sectors. Intermediate-term corporate bond funds are a good bet. Here, we look at some of the best investments for 2020.

Silver can be invested in, as the prices have come down now and are likely to rise in future. Demand for silver is expected to grow in the coming years, owing to the increasing industrial demand for this metal. Silver has not been the shining metal as expected in 2019, but analysts see it outperforming gold in 2020.

Palladium was the best performing commodity for the second year in a row, returning 54.2 percent in 2019. It is a good investment option, owing to its extensive use and China is one of the biggest markets of this metal. The metal can be bought in the form of bars or coins.

For all those looking for diversification, gold, silver and palladium are good investment choices. In the event of a sudden inflation or should the dollar prices dwindle, an investment in precious metals will prove to be of value.

They can be a safe bet for people who are looking for a long-term investment. These stocks have the reputation of performing reasonably, even during an economic downturn. They have offered a steady Return On Investment (ROI) in the past. Many will argue that investors can get higher ROI if they invest in emerging, relatively lesser-known companies, but the risk will be relatively higher.

Government has averted the fiscal cliff, but future tax laws can impact the performance of the stock market, and if that happens, penny stocks will be the first ones to take a hit. Even if blue chip stocks go down, investors shouldn't hit the panic button as the fundamentals of these companies are pretty strong, and there will always be scope for a recovery.

Taking into account all the considerations, we will advise investors to have blue chip stocks in their portfolio. Some of the best blue chip stocks which we recommend are those of:

• Johnson & Johnson
• Berkshire Hathaway
• Apple
• Anthem
• Comcast Corp.
• Bank of America Corp.
• Intel Corp.
• Phillip Morris
• Caterpillar
• DowDuPont

They help you diversify your portfolio and come at lower costs, thus making this investment a convenient option. Secondly, the analysis and monitoring of holding is done by professionals. Also, investors do not trade funds as frequently as stocks. Investing in ETFs and mutual funds is among the best strategies for this year.

Some of the very best mutual funds of 2020 worthy of your investment are:

• Vanguard 500 Index
• Vanguard Mid-Cap Index
• Fidelity Select Consumer Staples
• Vanguard Health Care
• Vanguard Balanced
• Hussman Strategic Total Return

Investors consider municipal bonds as a wise investment option for 2020. Yields on short-maturity bonds are expected to rise. The tax-exemption that they offer is one reason why most recommend investing in them. They are safe investment as historically, most bonds have been able to retain their value, while earning interest for investor at the same time.

The best high income municipal bond funds for 2020 are:

• BlackRock MuniAssets Fund
• Nuveen AMT-Free Municipal Credit Income Fund
• Invesco High Yield Municipal Bond Fund
• Cohen & Steers REIT & Preferred Income
• Oppenheimer Rochester High Yield Municipal Bond Fund

Disclaimer: This is meant for informative purposes only, and should not be substituted for the advice of an appropriately qualified professional. We do not promise, or guarantee that using this information will lead to a particular outcome/result. Readers are advised to use their own discretion.