Bonds, real estate, gold or cryptocurrency. Where to invest during the war
09.02.2023
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During the war, the topic of finance and investment receded into the background. As a rule, people invest free money. And now the solvency of Ukrainians has fallen, unemployment is growing, and prices in stores leave much to be desired. Many took out their financial pillows, on which they have been saving money for years.
But there are also those who are looking for where to invest money or at least just save them. Many investment options that existed before the war have lost their relevance. We offer you to understand the investment climate in the global market and consider the safest and most profitable ideas for investing in 2023.
Deposits, bonds and currencies
Now Ukrainians prefer to make deposits on demand, or on “short” deposits, which can be withdrawn at any time. Advantages of placing deposits on bank deposits – their guarantee by the state and relative security. Cons – deposit rates, which for a long time could not compensate for inflation, which is why the number of bank deposits in foreign currency has been decreasing since 2020.
Now there is a tendency for the growth of deposits. During the war, a law was passed that all 100% would be guaranteed by the state – this is a plus, and we would not advise people to take risks by investing in more conservative instruments.
The rates on foreign currency deposits, however, did not increase: according to Minfin.com.ua, an average of 2.5-3.5% per annum. But the population now has the opportunity to buy currency in the amount of UAH 50,000 per month in one bank at an exchange rate close to the interbank rate, which is approximately UAH 37 per $. It’s below “street” rate, but on the condition that the purchased currency will go to a three-month deposit. This tool is actively working, part of the population converts hryvnia into dollars in this way.
Deposits in hryvnia are much higher – in the case of a deposit for a year, you can get up to 15-16% per annum. But these calculations can hardly be considered absolute because of the inflation rate. So this way of investing can be called not “investing”, but rather, saving funds from inflationary losses.
Earth
A relatively new investment object for Ukrainians – agricultural land. In the near future, land prices will fall, but steadily: according to the law, land cannot be sold below the normative monetary value (NDO).
Now the land is being sold by those who did not plan to do so before. Due to the war and the deteriorating economic situation, it will soon be impossible to pay the rent. The situation may change under the influence of the course of hostilities and if it is possible to establish the export of agricultural products by sea. Unblocked exports will provide agribusinesses with income and allow them to pay rent. Then the number of people willing to sell the land will decrease.
Besides, even if the land comes under fire, it will not go anywhere and will remain an asset. Now we have the lowest possible price. It is likely that over the next two to three years after the end of the war, land will increase in value along with the renewal of the Ukrainian economy.
Property
Property Now — it is the market of the brave. Prices have indeed fallen, but the risks are still extremely high. Rental rates have also dropped significantly.
In the west of the country, real estate may have investment attractiveness, but we advise you to focus on logistics and office infrastructure, and not on housing stock.
Now it is impossible to predict when the low point in the real estate market will be, because the war continues, and the enemy is seizing territories.
Kyiv seems to be safe, but we understand — and arrives in Kyiv. Secondly, we do not understand what the demand for real estate will be, because the longer the war lasts, the fewer people will return to Ukraine, and another question is whether real estate will increase in price after the war and where it will grow.
In addition, millions of Ukrainians may stay abroad, and they will put their housing up for sale here, which can also greatly affect the market.
Shares of foreign companies
Now Ukrainians have the opportunity to invest only in foreign stocks, and not in domestic ones, and only for those who have money in foreign accounts. The fact is that because of the war, the National Bank
</p> <h3>Earth</h3> <p>A relatively new investment object for Ukrainians – agricultural land. In the near future, land prices will fall, but steadily: according to the law, land cannot be sold below the normative monetary value (NDO).</p> <p>Now the land is being sold by those who did not plan to do so before. Due to the war and the deteriorating economic situation, it will soon be impossible to pay the rent. The situation may change under the influence of the course of hostilities and if it is possible to establish the export of agricultural products by sea. Unblocked exports will provide agribusinesses with income and allow them to pay rent. Then the number of people willing to sell the land will decrease.</p> <p>Besides, even if the land comes under fire, it will not go anywhere and will remain an asset. Now we have the lowest possible price. It is likely that over the next two to three years after the end of the war, land will increase in value along with the renewal of the Ukrainian economy.</p> <h3>Property</h3> <p>Property Now — it is the market of the brave. Prices have indeed fallen, but the risks are still extremely high. Rental rates have also dropped significantly.</p> <p>In the west of the country, real estate may have investment attractiveness, but we advise you to focus on logistics and office infrastructure, and not on housing stock.</p> <p>Now it is impossible to predict when the low point in the real estate market will be, because the war continues, and the enemy is seizing territories.</p> <p>Kyiv seems to be safe, but we understand — and arrives in Kyiv. Secondly, we do not understand what the demand for real estate will be, because the longer the war lasts, the fewer people will return to Ukraine, and another question is whether real estate will increase in price after the war and where it will grow.</p> <p>In addition, millions of Ukrainians may stay abroad, and they will put their housing up for sale here, which can also greatly affect the market.</p> <h3>Shares of foreign companies</h3> <p>Now Ukrainians have the opportunity to invest only in foreign stocks, and not in domestic ones, and only for those who have money in foreign accounts. The fact is that because of the war, the National Bank ">limited the possibilities for the withdrawal of capital from Ukraine, so the option with shares of Western companies can be considered if you have money abroad.</p> <p>But even if such funds are available outside of Ukraine, one must be careful. Now the behavior of Western markets is more scaring off investors. All leading indices except for commodities and health care niya (healthcare), suffered significant losses, and, according to most experts, is still far from growth. Thus, the NASDAQ index of leading technology stocks has lost more than 20% since the beginning of the year. The Western world may be on the verge of a recession.</p> <p>We cannot know future market behavior — it can rise or fall. However, when <a href="https://sp.agency/en/service/crisis-management/">recession</a>, stocks usually fall. Therefore, in our opinion, this is not the most optimal entry point.</p> <h3>Virtual assets</h3> <p>Investments in crypto-currencies have raised doubts before, but now the beginning of a tougher monetary policy has led to a record collapse in the value of crypto-currencies. The value of money in the world is growing, and the demand for risky investments is falling. It is impossible to predict how prices will change in the future.</p> <h3>Gold</h3> <p>Gold can become a protection for savings, but only some Ukrainian banks offer "gold" deposits. The price of gold can both fall and rise, that is, it is impossible to predict, and it is very difficult for ordinary people to understand this investment instrument.</p> <p> </p> <h3>More Options</h3> <p>Among them – antiques, art or even collectible alcohol. At the same time, such investments require certain knowledge and efforts regarding the correct assessment of objects. In addition, the acquired luxury items must be properly and securely stored, which is quite difficult to do in the face of the constant threat of rocket attacks.</p> <h2>Conclusions</h2> <p>Our advice – invest in your own business. Of course, no one canceled entrepreneurial risks, but such investments can give the greatest profit. According to experts, it is now much easier for small producers, especially food products, to get on the shelves of stores, even large chain stores. And taking into account the lending programs offered by the state, starting a business will require not so much money.</p>”>limited the possibilities for the withdrawal of capital from Ukraine, so the option with shares of Western companies can be considered if you have money abroad.
But even if such funds are available outside of Ukraine, one must be careful. Now the behavior of Western markets is more scaring off investors. All leading indices except for commodities and health (healthcare), suffered significant losses, and, according to most experts, is still far from growth. Thus, the NASDAQ index of leading technology stocks has lost more than 20% since the beginning of the year. The Western world may be on the verge of a recession.
We cannot know future market behavior — it can rise or fall. However, when recession, stocks usually fall. Therefore, in our opinion, this is not the most optimal entry point.
Virtual assets
Investments in crypto-currencies have raised doubts before, but now the beginning of a tougher monetary policy has led to a record collapse in the value of crypto-currencies. The value of money in the world is growing, and the demand for risky investments is falling. It is impossible to predict how prices will change in the future.
Gold
Gold can become a protection for savings, but only some Ukrainian banks offer “gold” deposits. The price of gold can both fall and rise, that is, it is impossible to predict, and it is very difficult for ordinary people to understand this investment instrument.
More Options
Among them – antiques, art or even collectible alcohol. At the same time, such investments require certain knowledge and efforts regarding the correct assessment of objects. In addition, the acquired luxury items must be properly and securely stored, which is quite difficult to do in the face of the constant threat of rocket attacks.
Conclusions
Our advice – invest in your own business. Of course, no one canceled entrepreneurial risks, but such investments can give the greatest profit. According to experts, it is now much easier for small producers, especially food products, to get on the shelves of stores, even large chain stores. And taking into account the lending programs offered by the state, starting a business will require not so much money.
