2 Top Trends to Invest $10,000 in Right Now
Some investors focus all of their attention on good news, which is fine. But there are times when bad news offers up great investment opportunities as well. That's a contrarian approach, but it will probably feel appropriate for value investors.
Right now the trend of rising interest rates has opened opportunities in the real estate investment trust (REIT) arena. And a cyclical downturn in the chip sector has done the same in the high-tech space. Here are two ways to play these big trends if you have $10,000 to invest today.
Interest rates have risen dramatically over the past year. That's increased competition between things like CDs and income-focused investments like REITs. Why bother with risky stocks if you can get a 5% yield from a CD? (The answer is a lack of income growth.) From a business perspective, meanwhile, rising rates make it more expensive for REITs to grow because interest costs go up. There's a reason why the average REIT, using Vanguard Real Estate Index ETF (NYSEMKT: VNQ) as a proxy, is down around 30% from its early 2022 highs.
Source Fool.com
