Most of us know where to invest money in memories, but when it looks like the sky might be falling, knowing where you can invest money and how exactly to invest it becomes a puzzle. In 2014 and 2015 good investments might be hard to find, especially if yesterday’s good investments like stocks and bonds tank. This is not a prediction, but instead a “heads up.” You can’t prepare if you are not aware, so let’s take a closer look at the sky.
We all know that safe choices like money market funds and bank savings accounts don’t look like good investments for 2014 since they pay peanuts. But imagine if the sky starts falling: either interest levels ignite and/or the currency markets tanks? Either way or both… where to invest money may be the question of the day. https://www.binomo.or.id Safe choices will look like good investments for parking money that must be safe.
Wall Street’s traditional response to where to invest money: put about 60% into stocks with about 40% in bonds holding a cash reserve on the sidelines. Problem: in 2014 and 2015 losses in stocks might not be offset by gains in bonds… as was the case for the last 30 years roughly. If interest rates soar from today’s record-low levels, neither stocks nor bonds look like good investments.
For over 30 years interest rates were falling and bonds were generally good investments. With today’s ridiculously low rates (created by our government to stimulate the economy) a rebound in interest rates is in the cards (as the government unwinds its stimulus). When that happens, bonds will no longer be where you can invest money for higher interest income with relative safety. Bonds aren’t good investments when rates go up; they lose money. That’s the way it works. How exactly to spend money on bonds in 2014 and 2015 if rates take off: reduce and opt for safety.
Stocks had been excellent investments five years running because the year 2014 began. This was at least partly due to government stimulus and cheap money. In a way, stocks were where you can invest money because nothing looked cheap except for money (short-term interest levels were set at about one-tenth of 1 percent). With an increase of over 150% in five years, the downside risk in the currency markets is mounting. This begs the question of how to invest money in stocks if the sky starts to look ominous.
Remember that the stock market is truly a market of stocks, meaning that almost all stocks get hit once the market crumbles – but at least a few will undoubtedly be good investments. And the best way to find good investments in a negative market is to watch the price action. For example, as the market climbed 30% in 2013, some gold stocks were down about 50% by early 2014. Unless you know how to spend money on or how to pick a specific gold stock… you may want to know where you can invest money to obtain a piece of this action. The answer is to invest profit gold funds and let them select the gold stocks for you.
The bottom line is that in 2014 and 2015 investors face an uphill battle, because both stocks and bonds look pricey. That presents a fresh challenge to today’s investor in search of where to invest money. We are facing uncharted waters in this modern electronic world, where no one really knows how to invest or where to find good investments for future years. This includes the big investors like life insurance companies and pension funds.
My suggestion is to take some profits in your stocks and bonds, as the tide will turn eventually or even in 2014 or 2015. Then you’ll have a cash reserve, so that you can take advantage of the situation because the skies darkens. Smart investors are always in search of where you can invest money next, especially when a change of trend is in the cards. At such times, yesterday’s underperforming sectors or industries often become today’s good investments.