Forget gold and Bitcoin. Here’s how I’d invest £10k today to achieve financial freedom

first_imgForget gold and Bitcoin. Here’s how I’d invest £10k today to achieve financial freedom “This Stock Could Be Like Buying Amazon in 1997” Peter Stephens | Thursday, 6th February, 2020 Simply click below to discover how you can take advantage of this. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Image source: Getty Images. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Buying assets that have recently risen in price is a common practice among investors. After all, they have momentum that could continue over the short run to produce high returns.However, in the case of gold and Bitcoin, both assets may fail to produce continued price rises following their gains in 2019. As such, now could be the right time to invest £10k, or any other amount, in undervalued shares that have growth potential to improve your long-term financial situation.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Stock market potentialWhile the FTSE 100 may have gained 12% in 2019, it continues to trade at a price level that suggests it offers good value for money. For example, it has a dividend yield of 4.4% and trades less than 10% higher than it did over 20 years ago. Furthermore, many of its major sectors such as banking, financial services, resources and retail contain a range of companies that offer low valuations compared to their historic averages.Why is this the case? The reasons for their low valuations include ongoing political risk in the US and Europe, as well as the potential threat of disruption to the global economy due to the spread of the coronavirus (just the kind of factors that have been pushing up the gold and Bitcoin prices). These risks could continue to hold back investor sentiment in the near term. But in the long run, the track record of the world economy’s growth performance and the stock market’s past recoveries from previous downturns, suggest that capital returns could be impressive for investors.Buying shares while they trade on low valuations could prove to be a sound long-term growth strategy. With many large-cap shares currently offering improving financial forecasts over the medium term, their valuations could include wide margins of safety.A superior risk/reward opportunityWhile assessing the valuations of shares is a relatively straightforward process, the same really cannot be said for gold and Bitcoin. Bitcoin’s price, for example, is determined by investor sentiment and nothing else. Investors have no fundamentals available that can determine the underlying value of such virtual currencies, which means they could be trading at exceptionally low, or exceptionally high, prices at the present time. Similarly, gold’s price is very dependent on investor sentiment. Although it has some real-world use in jewellery and other applications, of course, much of its recent rise has been due to investor caution regarding the world’s economic prospects and a lower US interest rate. Both of these factors may not persist over the long run, and could mean that gold’s price rise comes to an end.Therefore, on a risk/reward basis, FTSE 100 shares could be more attractive than gold or Bitcoin. Their low valuations and the track record of the index in recovering from its previous downturns suggest that now could be the right time to avoid physical gold and Bitcoin, and instead buy a range of large-cap shares for the long term. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Enter Your Email Address See all posts by Peter Stephens Our 6 ‘Best Buys Now’ Shareslast_img read more