Best Way To Invest $1000 In 2024

Have you ever wondered how to turn, $1,000 into a small fortune maybe you think it’s impossible especially as all of us facing a devastating recession.

However, in this article we are setting our self, a challenge to prove this can be done. We have selected 6 different investments these include index funds, business, art, individual stocks and crypto currency.

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The data suggests these are good investments during a recession therefore, after looking at each in detail. We prepared to put a $1,000 of our own money into every asset.so we can see the results together.

Investment 01:-Index Funds

As it’s been delivering solid returns for decades. The figures don’t lie, if you invest $5 every day, let’s call that a $150/month into the S&P 500, at an average return of 8% for 45 years, then you would have $791,000.

According to Google, there are 16,436 days in 45 years. If we divide $791,361 by 16,436 days, we can see that every $5 you put in has turned into $48. That’s pretty close to $50. Now, we bet that’s got you thinking about your $5 Starbucks frappe a bit more carefully.

Index funds are seen as one of the safest investments over the long term. However, during a recession, they become even more appealing. This is because instead of betting on individual companies to pull through the tough times, you’re purely investing in a long-term success of the whole market.

Think of it like going to a horse race and instead of putting all your money on one price stallion, you decide to spread it across all the top performers. So now if one or a few of them lose it should be okay, because you will benefit from the others winning.

This is a proven winning strategy over a 15-year period, 92% of the top hedge funds are trailing the S&P 500 index. We mean these guys are meant to be the experts, but they are getting destroyed by a very hands-off investment which is so easy to manage.

You may think the S&P 500, isn’t very well spread, as it’s only made up of the top 500 American companies. However as of 2017, only 70.9% of the companies that make up the S&P 500 revenue were from the U.S.so it’s a lot more global than you might first think.

But if you want to spread your money further then there are lots of different funds that cover different countries and companies. We have some of our money in emerging markets index funds, so we believe we’re going to see a big shift in global powers over the next 5 to 10 years.

Even though we also invest elsewhere for bigger returns, we always gradually buy index funds whatever the market’s doing be that trending up or down. There’s multiple brokers you can use. If you’re in the U.S. you can use public.com.

We are going to use my UK vanguard account. Let’s put $750 into the S&P 500 and $250 into a global index. 88% of millionaires are self-made entrepreneurs, according to fidelity investments research.

Index Fund => Risk Scale-3/10 (We are giving this a 3 out of 10 on the risk scale.)

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Investment 02:-Business

In unlike index funds you could lose all your money in a bad business move. However the power is in your hands, not someone else’s. If you haven’t started a business then it could be the perfect time during the period of a recession.

There a good chance you’ll be starting from your home and have minimal employees and very little overhead to maintain at this point. That combination puts you in a great position to provide an inexpensive solution and win over customers.

In an economic downturn, businesses and consumers alike are looking to cut costs, which may allow you to break into the market. But your window of opportunity could close soon as recessions are typically short-lived and followed by long periods of growth and prosperity.

The period after World War II, for example: – is considered the greatest expansionary phase in modern times. Similar points can be made for the years after the energy crisis recession (1981-1982), the gulf war recession (1990-1991), the dot-com bust (2000-2002) and the great Financial Recession (2008-2009).

Each recession was followed by a longer period of growth than the period of recession. The biggest mistake we see people making on a daily basis is putting all their money into assets they don’t have direct control over. As you know we are not against the stock market however, we don’t think enough people value their skill sets.

Business => Risk Scale-3.5/10 (We are giving this a 3.5 out of 10 on the risk scale.)

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Investment 03:-Fine Art

You might not have considered fine art as a potential investment. To be honest, neither had we, until we looked into the shocking stats. You know the S&P 500, that investment many millionaires don’t stop banging on about.

Well, contemporary art investments have actually done better than the beloved S&P 500 over the last 25 years. To be exact, the S&P 500 had a 9.5% average annual return, whereas contemporary art averaged 14% price appreciation.

But surely, if we’re facing a recession, the demand for these expensive paintings will drop and then the value of our investment will plummet. Well, actually the global demand held up pretty well during the last great recession.

In 2007, global public auction sales topped $32.9 billion, while in 2008 the figures hit $28 billion, this only shows a slight dip in demand and it was still higher than 2005 when auction sales were only $17.2 billion.

Maybe more importantly, during 2009, Yves Saint Laurent, art collection set a new record for a single owner collection, totaling $408 million. To put this into perspective, this happened just 5 months after the complete collapse of Lehman Brothers and the markets.

Again, if we look at our old friend, the S&P 500, this didn’t recover the pre-recession levels until 2013, 2 years later than the art market, due to the eye watering prices these paintings command. Unfortunately, this asset class has only been accessible to the already rich and powerful.

There is also a degree of skill involved with picking the right pieces that the average investor just wouldn’t understand. So,

How Are We Going To Invest $1,000 Dollars In Art?

Well we have been doing some research and companies like masterworks, really stand out as they use data that isn’t available to the average investor and a top research team in order to determine which high-end artist markets have the most momentum.
They’re even asked by worldwide groups like city to collaborate on reports about the art market. This just shows how much comprehensive data they have. They help people get fractional pieces of art, rather than the whole thing.
This isn’t NFT’s, this is breaking a painting into shares, so people can add a piece of it to their portfolio. Their incentives are also aligned with the investors, as masterworks only make money when they sell a painting for a profit.
We still think investing in art is for the long term and that’s why this platform doesn’t actually accept investors that are older than 70.
Masterworks aims to hold its art pieces for 3 to 10 years, at which point it then sells the painting and distributes the proceeds amongst investors based on their number of shares. But so far, the paintings they have sold ahead of schedule have delivered 25% net returns for the last 4 years in a row through Covid, bear market and rampant inflation.
Past performance is no guarantee of future results but that’s pretty incredible. So with that said let’s invest a $1000.

For Example:-We really like Mark Bradford’s,” promised land”. It even shows a progress bar that lets us know how much of the asset has already been bought.

Fine Art => Risk Scale-5/10 (We are giving this a 5 out of 10 on the risk scale.)

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Investment 04:-Individual Stocks

Imagine you invested $1,000 and woke up in the morning with $10,000, this is what most people dream of and it’s happened time and time again with investment for individual stocks. Finding the best stocks to invest in isn’t an easy task.

Investing in individual stocks gives you complete control over how your money is allocated. When you invest in index funds, you can’t pick and choose the individual companies, instead, you’re stuck with whatever the fund decides to do.

So stock picking gives you the ability to beat the market. But bear in mind that 90% of people lose money, hence the high risk scale rating.

If you’re interested in giving this a shot, then now could be a very good opportunity as the market has fallen from the highs of the pandemic and there are lots of deals available if you can find them. During a recession, it’s more important than ever to invest in well-managed companies that have low debt, good cash flow and strong balance sheets.

You’re able to find all this information out for free on Yahoo Finance. Some industries are also considered more recession resistant than others such as health care.

If you think about it people can’t put off most health care spending, when you’re sick you need to see a doctor and buy medicine. Walmart and McDonald’s are also great examples of companies that have thrived during past recessions.

This is because when people have less money they flock to discount stores like Walmart and drown their sorrows in comfort food such as McDonald’s burgers.

However, we are going to invest our $1,000 in apple, as they sit on the luxury end of the market and people would hate to give up their nice phones. It’s also important to remember that most people don’t even buy their phones these days. They finance them through contracts. This gives people access to iPhone and puts money in apple’s pocket regardless of their customer’s bank balances.

Individual Stocks => Risk Scale-7/10 (We are giving this a 7 out of 10 on the risk scale.)

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Investment 05:-Crypto Currency

When you hear about people becoming millionaires from a simple $1,000 investment in a short period of time, you can only be talking about one thing, of course crypto currency.

Back in the day, if you’d mentioned crypto currency, we would have disregarded it as a short-term craze. However, as bit coin rallied, we had to take notice.

The more we dived into the technology behind crypto, the more interested we became. We made a goal to invest around 5% of our portfolio and face some challenges along the way, such as our bank account being closed down. This is because bit coin is a digital currency that is not controlled by any authority or bank.

many experts believe crypto and block chain technology will go on to disrupt many industries such as banking, law, cyber security, insurance and more.

The top 10 crypto currency coins are always fluctuating, but the two that remain in first and second places by market cap are bit coin and ethereum, which we like to call the blue chip cryptos. These are the most popular and safest coins.

During recession, naturally prices across the board have dropped quite drastically. A lot of investors see this as a great buying opportunity. Crypto is certainly not something to overlook, but should only be part of a diversified portfolio due to its high risk.

So, we are going to invest $500 into bit coin and $500 into ethereum.

Crypto Currency => Risk Scale-8.5/10 (We are giving this a 8.5 out of 10 on the risk scale.)

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Investment 06:-Online Gambling

According to hip-hop dx, the rapper drake has reportedly bet over $1 billion for our online gambling since December 2021. This brings us on to something we never thought what many billionaires and millionaires we are doing in online platform.

The rise of online gambling is creating millionaires, but is it the gamblers making millions or the creators?

It’s extremely lucky and the chances of success are very slim. Many people get sucked into gambling and are always chasing that feeling again.

Over the long term the house always wins it’s like the opposite of investing when over the long term you have a high chance of success gambling is just a rigged game.