close
Tips For Investing in Tough Times
With the economy faltering, many people have seen their investments fall in value. But there are still places to invest today and make a positive return. When looking at different places to invest your cash, look for certain signs of relative safety rather than taking the latest hot tip.
Bank savings accounts are often the first place where people place their savings. In this economic environment there have been some bank failures, but rest assured that your first one hundred thousand dollars deposited at each bank is protected by the FDIC. If you have a savings account at the same bank where you have your checking account, then many banks will allow you to use your savings account balance for overdraft protection, so this is an added benefit of a savings account.
Many stocks falter in tough economic times, but there are always exceptions. Some stocks tend to outperform the averages because they are in recession proof sectors. Some of these sectors can include drug companies and other medical related companies. Government contractors such as aerospace and other defense related firms can continue to outperform due to ongoing government contracts. Do your homework on each specific company stock that you are considering.
Currency trading, or Forex trading, can be another option in tough economic times. Forex trading takes advantage of the relative differences in value of one currency compared to another currency. For example, when trading the euro dollar currency pair, one can take advantage of gains made by the dollar against the euro, or the euro against the dollar. Currency traders would benefit from an education in fundamental analysis and technical analysis, which teach the trader about factors that influence the value of a currency pair.
Mutual funds can be a good place to diversify your investments. Look for a good combination of different mutual funds, some that perform well in a growing economy, and some that are more defensive in nature. Mutual funds can be a good way to get access to domestic stocks, international stocks, bonds, and other financial instruments. Mutual funds can spare you the trouble of buying and selling individual stocks and trying to find the right time for these transactions.
A good approach would be to diversify your investment portfolio to help spread investment risk to different types of investments that respond differently to changes in the economy. Be prepared to change your investment choices once the economy starts to recover, as this may be a good opportunity to get into some investments, such as growth related stocks right before they move higher.
Could you use some extra money?
I have a free guide that shows you how to quickly bring in the extra bucks!
Grab your free guide “How To Turn $5 into $150″ at www.wholuvsmoney.info [http://www.wholuvsmoney.info] now, while it is still available.
Tags: Investing, Times, Tough
View this post on my blog: http://stocktips.valuegov.com/tips-for-investing-in-tough-times/
全站熱搜
留言列表
