Forget gold and Bitcoin! Here’s how I’d invest £20k in 2020 to make a million

Gold and Bitcoin became increasingly popular in 2019. They recorded strong growth that may continue in the short run. As such, many investors may be thinking about adding them to their own portfolios.

However, they both could fail to offer a superior risk/reward opportunity compared to the stock market. With many FTSE 100 and FTSE 250 shares currently trading on low valuations and having improving growth prospects, they could be a better means of making a million.

Risky prospects

Bitcoin may have more than doubled at its peak in 2019, but its risks continue to be high. Investors have no means of ascertaining whether its current price level represents good value for money, since the virtual currency’s price is dependent on sentiment rather than fundamentals. As such, they may be buying an asset which is grossly overpriced.

Furthermore, Bitcoin has a limited size, as well as competition from other cryptocurrencies, that could inhibit its potential to replace traditional currencies….