We are still in recession; these are my 3 top picks to protect my money.

Photo by Carlos Pernalete Tua
This year has been a roller coaster of decisions for my money. I have lost a lot of money in the hot markets due to the recession, and I have several assets paralyzed because they are not at the correct price for me to sell.

One thing I have decided to do this year is to protect the money that I am going to invest for now: this means looking for safer investments to keep my money and, above all, to have more liquidity. This will mean no more houses, no more individual stocks, and no more cryptocurrencies for now.

Read also: Do these things during a recession, you will definitely have more money ( must read)

For that reason, these are the top 3 investment options I chose to focus on for 2023 to protect my money and win.

1. Tech, Dividends, and Vanguard Index funds.

The first 35% of my money will be for index funds. Despite the recession, any funds didn’t suffer such a big downturn. Therefore, it is expected that they will continue strong by 2023 and even return to their ATH.

So for every S&P500, you buy now at $3797, you could earn more than $1000 when it goes back to $4818.

But contrary to what most people are doing, most of my money will be for the tech and dividend funds (the $QQQ) instead of the vanguard one.

Even the S&P500 had a good performance; the reason why it is always up is because of the tech stocks that are there. For that reason, I will simply focus on the tech stocks.

S&P500 VS NASDAQ-100
Also, investing in the dividends funds will help me have a liquid cash flow for every quarter the dividends pays. The one I will focus on is the $DGRO (The iShares Core Dividend Growth ETF) because it has exposure to dividend-paying stocks, but they are also growing their dividends year over year.

One example of the power of dividends is in this thread, where is explained how 20 years ago, if you invested $10,000 into realty Income today, you could have:

$58,727 without dividends reinvested
$99,559 with dividends reinvested
So my money for index funds will be divided into 15% for $QQQ, 15% for $DGRO, and 5% for $VOO.

2. A 12-Month Treasury Yield

The other I will make for this new year is to put the liquid cash I already have in a 12-month treasury yield of the United States. This will ensure me over 4% of my money annually while it is there.

Something I like about this option is that it is a risk-free opportunity (because it is basically holding a U.S. government security with a given maturity) that will give me passive income while everything stabilizes, which is better than a savings account in any bank, and safer than trying to time the market with any stock that is “cheap” right now.

An alternative that you could analyze as a foreigner is to see what bonds are similar to the treasury yield but that are offered by the government of your country. For example, in my country, Dominican Republic, there is an option called “government bonds,” which works similarly to the U.S. treasury and gives between 5%-10% per year.

ATTENTION: Click “HERE” to receive More updates directly on your WhatsApp!

3. Forex market

Thanks to the different situations happening worldwide, the different currencies fluctuation in many parts of the world are giving a lot of opportunities to create wealth in the short term.

For example, In 2008, the euro to U.S. dollar annual average exchange rate was $1.47, which meant that one euro could buy 1.47 U.S. dollars. Right now, you can buy 1 Euro for 0.99 dollars.

Euro to dollar historical chart, by Exchangerates.org
My strategy will be making shorts and longs depending on the news that Europe and other countries have, and in the long term, I will hold Dollars to protect myself from the currency inflation of my country.

According to an article by Admiral Marketers, this is one of the best markets to trade in right now because it is the largest and the most liquid market in the world, and the advance in technologies is making it more available worldwide.

Read also: How to get rich in your spare time ( read this now)

Final thoughts

It is a fact that the Real Estate market is in a bubble now that is going to explode at any time. For that reason, I decided not to put my money there for now.

Also, individual stocks in this recession have a higher risk now than ever because of the pandemic results and the companies trying to survive. Therefore, I will not invest there for a while until everything is steady again.

To protect my money for the incoming months, I decided that these will be my top 3 investments for now. Those options will assure me gains in the short term and liquid cash to use if I see a good opportunity in the markets in the near future.

CONTRIBUTED BY Desiree Peralta

For more information and updates join our WhatsApp group HERE

Follow us on Twitter HERE

Join our Telegram group HERE