ANOTHER 8 Things You Should Do For Binomo Success

Most folks know where to invest money in memories, but when it looks like the sky may be falling, knowing where to 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 rather a “heads up.” You can’t prepare if you’re unaware, so let’s have 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 imagine if the sky starts falling: either interest levels ignite and/or the stock market tanks? Either way or both… where you can invest money may be the question of your day. Safe choices can look like good investments for parking money that must definitely be safe.

Wall Street’s traditional response to where you can 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 going back 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 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 levels is in the cards (as the government unwinds its stimulus). When that happens, bonds will no longer be where to invest money for higher interest income with relative safety. Bonds are NOT good investments when rates go up; they lose money. That’s the way it works. How 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 in part because of government stimulus and cheap money. In a way, stocks were where to invest money because nothing looked cheap except for money (short-term interest levels were set at about one-tenth of 1 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 look ominous.

Remember that the stock market is truly a market of stocks, which means that almost all stocks get hit when the market crumbles – but at the very least a few will be good investments. And the best way to find good investments in a bad market would be 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 pick a specific gold stock… you may want to know where you can invest money to have a piece of this action. The answer would be to invest money in gold funds and let them select 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 displays a new challenge to today’s investor in search of where you can invest money. We have been facing uncharted waters in this modern electronic world, where no-one really knows how to invest or how to locate good investments for future years. This includes the big investors like life insurance companies and pension funds. My suggestion would be to take some profits in your stocks and bonds, as 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 as 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.