الجمعة، سبتمبر 18، 2009

Where to Invest in a Bad Stock Market

When stocks are plunging and/or times are uncertain, it's time to get
creative and find alternative investments that can deliver higher
returns than you can get at the bank. In fact, smart investors invest
in stocks and bonds, plus in ALTERNATIVE investments.
Alternative investments include the likes of oil, gold, real estate,
other commodities and tangibles, and foreign investments.
Bonds, money market securities and savings products like bank CDs
might offer investors refuge in rough times, but they don't deliver
growth. This is especially true today when interest rates are at or
near historical lows.
These days you don't even need to go outside of the stock market to
find opportunities when equities (stocks) in general are getting beat
up. You can find investments that have the ability to buck the trend
right on your discount broker's web site.
Let's look at recent history as an example. The stock market lost over
50% by early March of 2009 in a brutal bear market. Less than three
months later it was up 40% from its March lows. What should prudent
investors do in June of 2009? How much should they be willing to bet
that equities in general will continue to climb at this point in time?
After all, even in a good market it usually takes more than two years
for the Dow or S&P 500 to go up 40%.
When you invest in a variety of U.S. equities, you are betting on the
American stock market in general, and the market tracks future
investor expectations for the economy in general. In other word, if
the economic recovery starts to look dim, most domestic equities
across the board will take another hit.
The key here is that not all equities are necessarily vulnerable. Some
sectors can prosper while the others tank. These are the alternative
stock investments you need to seek out. Let's look at some prospects.
Oil prices and oil stocks have proven in the past that they can go up
as the economy declines. The easiest way to bet on rising oil prices
is to buy oil ETFs in your brokerage account. ETFs trade on major
exchanges just like GE and Microsoft do.
It is possible that some foreign markets will recover before the U.S.
does. You don't need to pick individual foreign stocks to participate
in these markets. Just buy an ETF or two that invests in an entire
index of foreign equities.
Consider gold, basic materials and real estate as alternative
investments as well. They don't always track the U.S. stock market,
and at times can be undervalued. Once again, the easiest way to invest
in these sectors is with the appropriate ETF.
In uncertain times it's a good idea to mix it up and invest in
economic sectors that at times march to the beat of a different
drummer. These alternative investments can go with the flow in good
markets; more importantly, they can also act as a counterbalance when
the economy and U.S. markets stumble. 

Secret Strategy That Turned $1,000 into $1.4 MILLION in Just 13
Months: http://pennystcjf.key.to/
y.to/

--~--~---------~--~----~------------~-------~--~----~
You received this message because you are subscribed to the Google Groups "Forex Lane: Learn, News Charts Calendars" group.
To post to this group, send email to forex-lane-learn-news-charts-calendars@googlegroups.com
To unsubscribe from this group, send email to forex-lane-learn-news-charts-calendars+unsubscribe@googlegroups.com
For more options, visit this group at http://groups.google.co.za/group/forex-lane-learn-news-charts-calendars?hl=en
-~----------~----~----~----~------~----~------~--~---

ليست هناك تعليقات:

إرسال تعليق

كن إيجابيا وشارك برأيك لا تقرأ وترحل
تقييمك للمواضيع يساعدنا على معرفة مدى توفقنا فى اختيار المحتوى المناسب لك وتعليقاتك تطلعنا على رأيك وانطباعك واحتياجاتك مما يساعدنا على تلبيتها.
شرف لنا أن تحمل صفحاتنا كلماتك.
تفضل بالتعليق: