How to invest 1 million euros

How to invest 1 million euros with the stock market continuing to demonstrate strength? With the S&P 500 Index recently hitting an all-time high, many investors may be feeling uncertain about where to direct their capital.
If invested well, this amount can guarantee interesting returns for you and your family.
However, industry experts remain optimistic about the future of the market: the economic prospects also stimulate investor confidence.
Bank of America expects PCE inflation (due on Friday, March 29) to come in at 0.4% on a monthly basis, supporting the Fed's decision to cut interest rates.
Barclays compares the current situation to that of 1995, when markets continued to prosper after a round of rate cuts.
In this context, let's see the three best strategies suggested by fund managers and asset consultants for investing 1 million euros.
read also Investments: all markets are growing but something doesn't add up 1) Investing 1 million euros with a prudent strategy Investing 1 million euros can be managed through a prudent and balanced strategy such as the 60/40 portfolio, popular among many investors.
This approach involves splitting your capital, allocating approximately 60% to stocks and the remaining 40% to fixed income and real assets.
The equity component includes diversification across categories, including growth and value stocks, both US and international.
Additionally, a portion of the portfolio includes small caps and mid-caps, which offer long-term growth potential.
As for fixed income, we opt for a balanced distribution between short- and medium-term bonds, along with a small percentage in high-yield bonds.
Real assets, such as real estate and commodities, provide additional diversification and protection against inflation.
This strategy, supported by financial industry experts, aims to maximize returns while reducing overall portfolio risk.
2) Focus on technology and AI If the goal is to exploit the potential of technology and artificial intelligence in the field of investments, an example to follow is that of Carnegie Investment Counsel.
The asset management company has developed a model portfolio that highlights the importance of sectors such as technology and artificial intelligence in the investment space.
A significant portion of capital is invested in growth technology stocks, reflecting the growing importance of sectors such as cloud computing and data center storage.
For example, investments in companies like Nvidia have demonstrated impressive growth, highlighting the earning potential in AI-related sectors.
Carnegie experts believe there is an urgency in adapting computing infrastructures to meet the growing needs of artificial intelligence.
This translates into investment opportunities in companies that provide solutions to modernize the grid and make it more efficient, such as Watsco.
In addition to technology stocks, Carnegie is also looking at international investments.
He sees potential in Mexico, a beneficiary of declining foreign direct investment from China, and India, which is experiencing a digital transformation across all sectors and strong demand from the middle class.
Taking inspiration from this approach, investors can consider ETFs and specific stocks that reflect growth trends, such as the US technology sector (XLK) and medical device stocks (XLV).
This model portfolio offers an opportunity to capitalize on growth potential in technology and AI while maintaining adequate diversification and controlled risk.
3) Invest 100% in shares Some investors opt for a decidedly more aggressive approach, investing their entire capital in shares.
This type of portfolio is designed to maximize growth potential, although it carries significant risk, especially for the small-cap portion of investments.
While maintaining the focus on some big techs, such as Nvidia and SuperMicrocomputer, whose value continues to grow rapidly, experts suggest having a global vision of investments, including in the portfolio stocks of companies such as Li Auto, a Chinese manufacturer of electric vehicles, and the Mexican company Vista Energy.
This geographic diversification aims to capitalize on growth opportunities in emerging markets and growth sectors.
For example, in the "moderately aggressive" portfolio proposed by Navellier & Associates – in addition to the stocks mentioned – Microsoft, Eli Lilly, Exxon Mobile, ConocoPhillips and Spotify appear.
Conclusions The decision on how to invest 1 million euros depends on personal preferences, risk tolerance and return expectations.
The strategies presented offer an overview of the different options available, from the most conservative to the most aggressive.
Before making any investment decisions, you should consult a professional financial advisor to evaluate your financial needs and goals.
DISCLAIMER The information and considerations contained in this article should not be used as the sole or primary support on which to make investment decisions.
The reader retains full freedom in his own investment choices and full responsibility in making them, since he alone knows his risk propensity and his time horizon.
The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation to public savings.