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Finding the best investments for 2022 is crucial for anyone trying to get ahead. Saving for retirement is hard enough, but as the world lurches from one crisis to another and inflation picks up pace, Canadians are looking for better investments to get through uncertain times.
What assets are more likely to carry your savings through the uncertainty ahead? Will assets that have been thriving continue to do so? Let’s take a look at some of the assets people in Canada are turning to.
Gold Bullion
Inflation is a top concern for Canadians right now, and gold bullion is frequently considered an inflation hedge. Gold bullion has long been a backup asset people turn to in high-inflation environments and during periods of geopolitical uncertainty.
You have options for investing in gold, including mining stocks, Exchange-Traded Funds, and buying physical gold. Buying bullion is one of the more straightforward ways to enjoy the benefits of rising gold prices with minimal risks.
If you’re not sure where to buy gold in Canada, start with a local bullion dealer. Bullion dealers sell gold and silver coins and bars. They’re a good place to start if you’re looking for an asset that is relatively liquid and has a history of performing well during times of uncertainty.
Real Estate
Real estate prices have seen astronomical growth in Canada over the last few years, heating up to record-high levels in the last two. Home prices in the Greater Toronto Area, the country’s largest metropolitan area, rose by 28% year-over-year between the start of 2021 and 2022.
Some worry that this is a sign of an out-of-control housing bubble and that rising interest rates will bring about an ugly correction.
On the other hand, there’s also evidence that Canada is in the midst of a severe housing shortage, and demand will continue to remain robust for years to come, as increasing housing availability is a lengthy process.
While investing in property itself may come with a sizeable risk given today’s prices, demand for housing isn’t going anywhere. Investors could benefit by investing in REITs that allow them access to development markets with a smaller commitment.
Energy Stocks
Crisis-driven price growth for oil and gas seems to be leading the way for the reinvigoration of energy stocks, while value stocks in the renewables sector also provide promise for future growth.
With sanctions placed on one of the world’s biggest sources of oil and gas, crude oil prices have risen considerably, and there are growing concerns about an international shortage as major projects are getting cancelled.
Energy stocks throughout 2021 outperformed the broader market, with a total return of nearly 47%. If investing in oil and gas doesn’t align with your beliefs, governments globally are beginning to incentivize and fund clean energy growth in a meaningful way, and renewables are set to account for a significant portion of growth in global power capacity over the next few years.
