Most folks know where you can invest money in memories, but when it appears like the sky may be falling, knowing where you can invest money and how 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 rather a “heads up.” You can’t prepare if you’re unaware, so let’s take a closer look at the sky.
Everybody knows that safe choices like money market funds and bank savings accounts don’t appear to be good investments for 2014 because they pay peanuts. But what if the sky starts falling: either interest levels ignite and/or the currency markets tanks? Either way or both… where you can invest money may be the question of the day. Safe choices will look like good investments for parking money that must definitely be safe.
Wall Street’s traditional answer 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 going back 30 years roughly. If interest levels soar from today’s record-low levels, neither stocks nor bonds look like good investments.
For over 30 years interest levels were falling and bonds were generally good investments. With today’s ridiculously low rates (developed by our government to stimulate the economy) a rebound in interest rates is in the cards (because the government unwinds its stimulus). When that happens, bonds won’t be where to invest money for higher interest income with relative safety. Bonds aren’t good investments when rates rise; they lose money. That is the way it works. How exactly to invest in bonds in 2014 and 2015 if rates take off: lighten up and opt for safety.
Stocks had been excellent investments five years running as the year 2014 began. This is at least partly because of government stimulus and cheap money. In a sense, stocks were where to invest money because nothing looked cheap aside from money (short term interest levels were set at about one-tenth of one percent). With a gain of over 150% in five years, the downside risk in the currency markets is mounting. This begs the question of how to invest profit stocks if the sky starts to check ominous.
Remember that the currency markets is actually a market of stocks, which means that almost all stocks get hit once the market crumbles – but at the very 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. If you don’t know how to spend money on or how to select a specific gold stock… you might want to know where to invest money to obtain a piece of this step. The answer is to invest money in gold funds and let them pick 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 displays a fresh challenge to today’s investor in search of where to invest money. We have been facing uncharted waters in this modern electronic world, where nobody really knows how to invest or how to locate good investments for future years. This consists of the big investors like life insurance coverage companies and pension funds.
My suggestion is to take some profits in your stocks and bonds, because the tide will turn eventually if not in 2014 or 2015. Then you will have a cash reserve, so you can make use of the situation because the skies darkens. Binomo Smart investors are always searching for 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.
