There are several investment options available that include gold, real estate, T-bills, stocks, bonds etc. I have heard that the most return that you can get is stocks of small enterprises. Can anyone share their knowledge upon this?

  • Why do you want to know? Are you planning to invest in it? – Victor Dec 8 '18 at 8:33
  • Yes, I am thinking of making some investment and a portion of it to the most higher return investment. – user5948 Dec 8 '18 at 9:13
  • Lumping fixed income securities in with equities, gold and real estate and asking which investment provides the highest return means that you need to utilize the library and improve your financial literacy. It will take time and effort but it will be worth it in the long run. – Bob Baerker Dec 8 '18 at 14:09
  • Surely I have begun doing that – user5948 Dec 8 '18 at 17:03
  • @user5948 - then FX is for you, it is the most liquid and usually the highest geared. But no doubt, if you are asking this question, you will lose money in whatever you put it in. Why? Because you are just after the next hottest tip and you have no plan. – Victor Dec 9 '18 at 21:58

The best investment today, may be the worst investment next month.

You can debate if cryptocurrency is an investment, but nobody can argue that some people made a ton of money if they bought in early 2017 and then sold in late 2017. Those who bought at the peak, are still waiting to see if they can cut their loses or if their investment will go to zero.

The pursuit of the best investment will expose a person to lots of problems related to trying to time the market:

  • Chasing the hot investment
  • Buying high and selling low
  • Transaction fees eating into profits
  • Tax issues

It can also cause problems related in lack of action by being paralyzed by the number of choices and the amount of analysis so that you spend too much time on the sidelines, thus missing the general movements of the markets.

You need to determine your goals, your time frames, your risk tolerance, and how you would react during various market changes before determining what makes the most sense for you. Which might be very different for somebody else.

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