Strategic Investment Choices 2024- Equities vs Bonds vs Gold Analysis

It's a new year and another 365 days of fresh perspectives, objectives, and initiatives. If you're an avid follower of the finance world, investing in equities, golds, and bonds competes with traditional methods like FDs, SIPs, PPFs, etc.

2024 is predicted by experts and analysts to be turbulent due to intricate and ever-changing market dynamics. Federal reserve rate increase, geopolitical tensions, global economic expansion hindrances, etc., are all set to divide 2024 into two halves- the first half is about caution and playing it safe, and the second is recovery and growing steadily.

Equities, Bonds & Gold Comparison:

Equity Investment:

Based on the 2023 annual financial report, gold and bonds have a scope of continuing their ascent, while equities may underperform. The US equity market underperformed in 2023 due to rising debts, credit card delinquencies, high-interest rates, and weak corporate earnings. The trend is sure to affect all the Asian and other emerging markets, too.

Bonds Investment:

The bond prices had increased significantly based on the rate cuts in the final quarter of 2023. About 50 banks are planning to implement rate cuts, and bonds are expected to offer handsome returns. Investing in debt funds, AAA-rated corporate bonds, and balance funds is highly recommended.

After years of sluggish scenarios and complexities, real estate is also competing to reign in 2024 based on the financial market outlook for 2024.

Gold Investment:

Trends & Forecast

Gold, in 2023, had given returns of 14% in the international markets and 16% in the domestic market. A consistent rise in gold prices can be expected as the increasing trend has been observed when central banks signal rate cuts. Whenever the FED embarked on a rate cut, the gold prices appreciated by 50%. As the second quarter of 2024 expects a rate cut, the prices of gold will be in the rising mode.

The gold prices are expected to grow to 72,000- 75,000 INR per gram as per investment value trends in 2024.

Finance expert Chetanwala has come up with a perfect concoction for best investments for 2024- equity investment can be 70-80%, debt can be 15-20%, and gold can be 5-10% for five years. If the investment plan is for ten years, then the real estate can be 10-20%, debt can be skipped, and the rest can be equity. We're your financial go-to advisors for strategic investment choices in 2024, indeed!