The A – Z Of Binomo
Most of us know where to invest money in memories, but when it appears like the sky might be falling, knowing where to invest money and how to invest it becomes a puzzle. In 2014 and 2015 good investments may be hard to find, particularly 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 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 appear to be good investments for 2014 because they pay peanuts. But imagine if the sky starts falling: either interest rates ignite and/or the stock market tanks? In any event or both… where to invest money is the question of your day. Safe choices can 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 may 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 appear to be good investments.
For over 30 years interest levels 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 levels is in the cards (because the government unwinds its stimulus). When that occurs, bonds will no longer be where to invest money for higher interest income with relative safety. Bonds aren’t good investments when rates rise; they lose money. That’s the way it works. How to spend money on bonds in 2014 and 2015 if rates take off: lighten up and choose safety.
Stocks had been very good investments five years running as the year 2014 began. This is at least in part because of government stimulus and cheap money. binomo login In a sense, stocks were where to invest money because nothing looked cheap except for money (short term interest rates were set at about one-tenth of 1 percent). With an increase of over 150% in five years, the downside risk in the stock market is mounting. This begs the question of how to invest profit stocks if the sky starts to look ominous.
Remember that the currency markets is actually a market of stocks, which means that the vast majority of stocks get hit when the market crumbles – but at least a few will be good investments. And the best way to find good investments in a negative market would be to watch the price action. For example, because 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 might want to know where to invest money to get a piece of this step. The answer would be to invest money in gold funds and let them pick the gold stocks for you.
The end result is that in 2014 and 2015 investors face an uphill battle, because both stocks and bonds look pricey. That presents a new challenge to today’s investor searching for where you can invest money. We are facing uncharted waters in this modern electronic world, where nobody really knows how to invest or how to locate good investments for the future. This includes the big investors like life insurance coverage companies and pension funds.
My suggestion would be 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, in order to take advantage of the situation as the skies darkens. Smart investors are always searching for where to invest money next, particularly when a big change of trend is in the cards. At such times, yesterday’s underperforming sectors or industries often become today’s good investments.