The financial market has been highly volatile this year as concerns about Donald Trump’s tariffs and fears that the US bubble was bursting rose. Gold price has surged to a record high, while the top three US indices like the Dow Jones, Nasdaq 100, and S&P 500 are in the red.
European equities have trounced their American rivals this year, with the Euro Stoxx 50 Index has jumped by 14%. This article examines where to invest $10,000 today for superior returns over the next few years.
Bitcoin and BTC ETFs
The first key area to invest and generate superior returns in the next few years is in the crypto market. While the Bitcoin price has dropped by 13% from its January high, it has performed better than stocks following the Liberation Day tariffs. Furthermore, spot Bitcoin ETFs experienced net inflows of over $3 billion last week, indicating that the cryptocurrency is becoming a safe-haven asset.
Furthermore, Bitcoin has a strong track record of outperforming the stock market. Besides, it has jumped from less than $1 in 2009 to $94,000 today. These gains have not been linear and the coin has experienced substantial drawdowns in this period. For example, it tumbled by over 33% from its highest point in March to its lowest level in August last year and then bounced back.
Analysts are bullish on Bitcoin. Just last week, Ark Invest predicted that Bitcoin price will surge to $2.4 million by 2030. That would be a 2,426% surge from the current level,
The most cost-effective and straightforward way to invest in Bitcoin is to purchase it directly from an exchange like Coinbase or Kraken. Still, when considering spot Bitcoin ETFs, the Grayscale Mini Bitcoin ETF (BTC) is the best one to invest in as it has a low expense ratio of 0.25%.
China EV companies
Last week, Tesla reported weak financial results. The numbers showed that its total sales dropped by 9% to $21.3 billion last quarter. Its adjusted EBITDA fell by 17% to $3.3 billion, while its net income plunged by 71%.
These numbers showed that the company’s business was struggling as its deliveries in the United States, Europe, and China dived.
Therefore, one area to invest $ 1,000 right now is in Chinese electric vehicle companies, as these firms are experiencing more growth this year. This includes companies like Nio, Li Auto, BYD, and XPeng.
For example, Li Auto delivered 92,864 vehicles in the first quarter, representing a 15% annual growth. XPeng, a company that is also building flying cars, delivered 94,000 vehicles, a 330% annual increase.
Nio delivered 42,094 vehicles in the first quarter, up by 40% from a year earlier. Other firms like BYD and Zeekr have also boosted their sales.
China EVs are more innovative than their American counterparts. For example, BYD and CATL have just unveiled batteries that can charge in less than 5 minutes.
Nasdaq 100 index
The other contrarian area to invest $10,000 this year is in technology companies, especially through the Invesco QQQ (QQQ) ETF, which tracks the Nasdaq 100 index.
This is a contrarian call since the index remains in a correction after falling by over 10% from the highest level this year. There are also concerns that the artificial intelligence bubble has burst this year.
However, history shows that the Nasdaq 100 index typically rebounds whenever it enters a correction. It recovered from the dot-com bubble, the COVID-19 pandemic, and the Global Financial Crisis (GFC) dip.
The index is expected to rebound due to upcoming trade talks between the US and other countries, as well as potential Federal Reserve interest rate cuts.
This recovery will also boost other American indices like the S&P 500 and the Dow Jones. It also makes investing in the JEPQ ETF worthwhile, as it tracks the Nasdaq 100 index and offers superior returns.
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