Many believe investing is as simple as allocating money with the expectation of some benefit in the future. This is not the case; investing is an extremely complex task, especially where the future is concerned. One must consider a broad range of known and unknown factors of investment before making a decision on what and the amount to invest. Luckily for me, with a firm investment background obtained from the course – finance – I believe I can better my future through reliable investment decisions. One of my goals has always been to start a business. As such, the three fields I will potentially invest in considering current and future market conditions are consumer electronics, real estate, and the stock market.
Three (3) Ways I will Invest in My Future
The primary purpose of investing is to make a significant amount of returns in the long run. Key lessons learned in the course included efficiency in financial decision-making, entailing smartly allocating funds for maximum returns. As such, the three investment options – consumer electronics, real estate, and the stock market – are guaranteed money-making investments. With the principles of finance on investment such as risk and return, time value of money, profitability, and liquidity, and cash flow, I am confident that the selected investment options are financially viable ( Gitman, Juchau, & Flanagan, 1) . For instance, consumer electronics is a high-risk investment. However, it is a fast-growing industry, and with the principle of high-risk, high returns, I believe it will be profitable in the future. The principle of the time value of money also applies to the stock market investment in the sense that the money invested today in a publicly traded corporation will not be the same in ten years, for example. These are all financial marketing and analysis functions accurately illustrating high returns as covered in the course.
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My Confidence Concerning Investing in My Future
Of the three investment options, the one I am most confident about is consumer electronics. The rate at which the consumer electronics industry is growing following the trend in the past few decades is impressive. A considerable number of financial and investment experts believe consumer electronics is where the future is. This is drawing from the fact that life-changing and massive consumer electronics develop and commercialize relatively faster that infrastructure and energy technologies ( Li, Zeng, & Stevels, 2) . With a range of products and service such as smartphones, smart TVs, smart homes and others characterized by artificial intelligence (AI), internet of things (IoT), and more, consumer electronics will impact every aspect of human life ( Li, Zeng, & Stevels, 2) . It will be one of the most attractive sectors.
Challenges With Investing in My Future
I have reasons to believe the stock market will be the most challenging investment options in the future. One, the stock market is unique in the sense that it has a set of unique factors that influence its profitability (or lack of). Slight changes in economic conditions, political climate, interest rates, state of technology, public confidence, and the likes can severely affect a company’s performance in the stock exchange ( Gupta & Sain, 3) . Two, the stock market is prone to risks. Some multinational corporations have at some point, performed surprisingly low because of circulating negative rumors in the public domain. It could be a complex investment area, but it is manageable. Ways I plan to overcome the challenges is by continually studying the market and being able to predict profitable decisions regarding what company to invest in.
Conclusion
Many people have different visions of their future. Mine is to be a successful business person. This involves setting goals, making smart investment decisions, and committing to them. With ideas, knowledge, and concepts from finance, I am confident that I am in a better position to view and analyze the world as a future investor. The perspective the fundamentals of finance offers have led to the decision that the three investment ideas are instrumental in defining and attaining my vision.
Sources
Gitman, L. J., Juchau, R., & Flanagan, J. (2015). Principles of managerial finance . Pearson Higher Education AU.
Li, J., Zeng, X., & Stevels, A. (2015). Ecodesign in consumer electronics: past, present, and future. Critical Reviews in Environmental Science and Technology , 45 (8), 840-860.
Gupta, M. N., & Sain, M. (2018). The trend of the Stock Market and Its Impact on the Indian Economy.
