Where Can You Invest Your Money?

By www.ProfitableInvestingTips.com

http://profitableinvestingtips.com/profitable-investing-tips/where-can-you-invest-your-money
The global economy is slowing and
taking the US stock market with it.

Where can you invest your money
when stocks take another beating as
reported by USA Today?

Before We Continue…
Click the links below to get your
FREE training materials.
Free Weekly Investing Webinars
Don’t miss these free training events!
http://www.profitableinvestingtips.com/free-webinar
Forex Conspiracy Report
Read every word of this report!
http://www.forexconspiracyreport.com
Get 12 Free Japanese Candlestick Videos
Includes training for all 12 major candlestick signals.
http://www.candlestickforums.com

Wall Street is having another rough day
as the Dow is down more than 3050
points in afternoon trading amid a fresh
slide in oil prices below the key $30 per
barrel mark and continued fears about
slowing global growth.

The rocky start to 2016 for stocks is
continuing as investors contend with
well-known yet persistent headwinds
ranging from continued price declines in
the oil patch

Concerns about the impact of China’s
slowing growth on the U.S. and other
world economies, and questions
surrounding the pace – and timing – of
interest rate hikes from the U.S. Federal
Reserve.

Investors are not certain when to buy,
when to sell and when to sit on cash.

Where can you invest your money
today? How about alternative
investments?

Alternative Investments

If you are losing money in the stock
market and are not sure about bonds
what are some alternatives aside from a
set of CDs in the bank?

CNBC looks at alternatives to stocks
and bonds.

So-called alternative investments are
generally defined as anything that falls
outside traditional stock and bond
investments and whose role is to
potentially zig when the broader
markets zag.

The goal is to mitigate portfolio
volatility, hedge against downsides and
boost portfolio returns in a way that is
not tied directly to the stock market’s
performance.

While risk is definitely involved with
alternatives, not all are more risky than
stocks.

And some are more easily understood
than others.

One alternative is called an interval
fund.

These operate largely like traditional
mutual funds but invest in less-liquid
asset classes, such as reinsurance or
various real estate opportunities.

And there are only certain times you can
buy into the fund or unload your shares
(thus, the “interval” tag).

Reinsurance is insurance for insurance
companies.

This practice allows large insurers to
spread out their risk.

You invest your money for a given
period of time in an interval fund, take
your profit and reassess the market.

The article notes that interval funds
that deal in reinsurance or so-called life
settlements both of which are easy
concepts to understand.

The folks who invest in these sorts of
interval funds expect to see about an
8% per year return on their money.

Why Not Just Cash?

If you simply have no idea where you
can invest your money what is wrong
with cash?

Federal Deposit insurance will protect
$100,000 deposited in any given bank.

If the worst case scenario of deflation
occurs you will be in exactly the right
place.

The Street published an article last year
about how to invest in the face of
deflation of the U.S. economy.

Prices fall and the value of the dollar
increases as a result of deflation.

Viscerally these may appear as good
things, however it’s highly
counterproductive for spending, which
is the very action that buttresses
economies – especially the U.S.
economy.

Holding cash actually becomes an
investment with a real yield.

Coalesce this with the prices of goods
and services falling, and it becomes
prudent to put off purchases as you’ll be
able to procure them for less if you wait.

Deflation is an economy killer. But
where can you invest your money when
the value of the dollar is constantly
rising and the value of everything else
is falling.

During times of inflation the wisest
personal investment decision is
probably to hold cash as cash in hand.

Unfortunately the bank will charge you
interest on your deposits during such
times!

The nice part about holding cash is that
when the economy starts to recover and
promising investments present
themselves you have saved your capital
and are ready to re-enter the market.

Where Can You Invest Your Money?

Recommandé

Recommandé

Contenu connexe

En vedette

En vedette (7)

Plus de InvestingTips

Plus de InvestingTips (20)

Dernier

Dernier (20)

Where Can You Invest Your Money?