Year after year the basic investment strategy or asset allocation recommended for most people: 60% stocks and 40% bonds. Stocks or stock funds are the growth element and bonds or bond funds are the safer investment that provides higher income in this asset allocation. It's time to review your present asset allocation. What if economic growth fails to materialize or interest rates soar? If you hold bonds or bond funds consider shortening your maturities and cutting your exposure. For example, if you hold long-term bond funds consider moving to intermediate-term and short-term bond funds. You will sacrifice higher interest income, but will increase safety with this investment strategy.
Don't chase the stock market unless you want to speculate. Consider lightening up your asset allocation to stocks that closely follow the market in general. Cash refers to safe, liquid investments like savings accounts, short-term CDs, and money market securities. Money market mutual funds are the easiest way for the average investor to put money into money market securities. With short-term interest rates at historical lows many investors have taken money out of these safe investments. If you want to play defense, increase your asset allocation to cash.
Your best investment strategy is to survive financially with your investment assets intact. Meanwhile, cash is king; and diversify, diversify, diversify. How do you locate the best investments for your money? There actually are risks involved in all kinds of investing. Investing without carrying out adequate analysis is akin to playing roulette. Consequently what are the steps to find the best investments for your money?
If you are contemplating investing in corporation shares on the stock market, then you ought to remember that every one publicly traded corporations must supply investors and potential investors with admittance to company financial data.
Once you have satisfied yourself with the basic financial state of the company and that the opportunities of creating excellent profits into the longer term are favourable you will be able to contemplate putting money into the share. There's an continuous debate about if it is preferable to purchase shares which will enhance in price, or shares that pay good dividends and the answer to this question must always remain with the individual investor.
If you are contemplating investing in corporation shares on the stock market, then you ought to remember that every one publicly traded corporations must supply investors and potential investors with admittance to company financial data.
Once you have satisfied yourself with the basic financial state of the company and that the opportunities of creating excellent profits into the longer term are favourable you will be able to contemplate putting money into the share. There's an continuous debate about if it is preferable to purchase shares which will enhance in price, or shares that pay good dividends and the answer to this question must always remain with the individual investor.
