Co-founder of Affari Miei
January 29, 2024
What are the investments to be absolutely avoided? Today I propose to you 7 worst investments which you should avoid like the plague!
Making mistakes is fundamental to invest in the best way and you must know that there are investments that should not be made in any way and that only ensure losses and problems.
In life there are few certainties and, when we talk about finance, there are even fewer certainties but there are a series of investments which in most cases only bring pain and problems and today I will try to list them in no particular order, also trying to explain why these investments should be absolutely avoided.
Let’s get started right away!
This article talks about:
7 Investments to avoid
Let’s not waste time talking and let’s get straight to the point, so as to see which investments should be avoided like the plague, which can make us lose a lot of money and create serious problems for our lives, our health and obviously our wallet.
I’ve spotted some set and now I will list them one by one and explain why they are investments to avoid.
Luxury goods
Investments in watches, jewellery, vintage cars, vinoworks of art and luxury clothing.
These are markets of nicheoften unregulated, where enthusiasts or insiders dominate, yet inexperienced investors risk making trust-based purchases without adequate understanding, potentially leading to significant losses.
So be careful when throwing yourself headlong into this very particular type of investment!
Small-cap stocks
Small company stocks with high growth potential may be interesting, but they undoubtedly also possess high risks.
Investing in these stocks can be dangerous if done without adequate understanding of the market or based on unrealistic expectations of high returns.
You might also reflect and think about taking a look at the ETFs that include small-cap companies: Here you could benefit from greater diversification and perhaps mitigate high risks.
Certificates
I certificates I am complex financial products often sold by banks, which may include capital protected, barrier, leveraged certificates, etc…
These tools are:
difficult to understand can have high fees often do not offer real returns.
Many investors do not fully understand what they are investing in, resulting in low or negative returns.
Mutual funds
They are the instruments most sold by banks. They have high management costs, entry and exit fees.
Despite these costsoften do not offer adequate returns, leading to losses for investors.
Here you will find an in-depth analysis of all the best mutual funds because the galaxy of these instruments is truly infinite and it is good to know how to move as best as possible.
Dangerous bonds
Investing in high-risk bonds, such as those of companies in financial difficulty or countries with political instability, is a good gamble.
Sure, these bonds offer high interest rates, but why do they do that? Well, to compensate for the high risk, but they often lead to default and losses for investors.
When it comes to bonds I always advise you to check the situation of the countries or companies you choose (if you want to focus on corporate bonds) because when you see high returns you always have to ask yourself why.
I recommend you look here instead what are safe and profitable bonds from which you can choose.
Insurance policies
Insurance products are often sold as safe investments, but they present two notable critical issues that must be considered: I’m talking about hidden costs and low returns.
Investors may lose money or earn lower returns than other investment options.
Are you sure it could really be the investment for you?
Real estate investments
Buying properties with the expectation of a revaluation that does not occur…
This is what often happens to those who throw themselves intoreal estate investment because he has heard of it or because he is mindful of the old times of his grandparents and parents. The problem is that years pass and things change.
We basically have some problems to consider:
Population growth Stagnant economy New taxes Pro-tenant legislation
All these situations have made real estate investments less attractive, often leading to economic losses.
To learn more about Investments
I believe I have given you some examples of investments to think about and which I advise you not to make or, at least, to think about for a long time before choosing.
If you want to delve deeper into this discussion and think about your savings in a conscious way, here are the guide what you need to read:
Furthermore, I also suggest you take a look at this path that I have developed for those who want to invest, but don’t know where to start: I believe you will find the right ideas to enrich your “toolbox”!
Happy continuation on Affari Miei!
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