What Is The Best Investment In A Recession?
You are not alone if you're still unsure of what to invest in in today's market. If you've been sitting on the sidelines waiting to decide what is the best investment for your portfolio, below are a few things to consider when choosing the best investment for your portfolio. (These ideas are just to help you brainstorm some options - they are not specific recommendations. Be sure your investing decisions are based on YOUR individual financial goals.)
Stocks: Investing in stock will require you to be a little more active in managing your investments; the days of buy and hold are likely gone for good. Since the economy is still not back to top performance, you'll want to stay on top of your investments to ensure they continue to perform. Invest in the big name companies, those companies which perform in both good and bad markets. These are companies consumers continue to buy, their products are everyday necessities, and the management has maintained good revenues, low debt and adequate cash flow.
Bonds: Bonds may be considered a safer investment than stocks, but you still have to actively monitor their performance. If for example the company fails, as a bondholder you can still be impacted negatively. For Treasury bonds, lately yields are at extreme lows, and even went negative! So remember that low risk means low return, and balance that with your overall financial strategy. Also research municipal bonds, agency bonds, utility and corporate bonds. As with stocks, select bonds backed by healthy companies or agencies.
CDs and Money Market accounts: These investments are very much like savings accounts in that they are usually insured (check with the bank you invest with) and offer very low rates in exchange for safety. Because of these low rates, it may be best to invest here only if you are near retirement, or will be paying for college shortly, or are looking for a place to park money while you look for other investments.
Any investment should be based on your own, personal investment strategy. No financial planner, friend, blog or anyone else can tell you what the best investment is for you. Take the time to determine what your long term strategy is first, and your best investment choices will be those that help you reach those goals. - 23200
Stocks: Investing in stock will require you to be a little more active in managing your investments; the days of buy and hold are likely gone for good. Since the economy is still not back to top performance, you'll want to stay on top of your investments to ensure they continue to perform. Invest in the big name companies, those companies which perform in both good and bad markets. These are companies consumers continue to buy, their products are everyday necessities, and the management has maintained good revenues, low debt and adequate cash flow.
Bonds: Bonds may be considered a safer investment than stocks, but you still have to actively monitor their performance. If for example the company fails, as a bondholder you can still be impacted negatively. For Treasury bonds, lately yields are at extreme lows, and even went negative! So remember that low risk means low return, and balance that with your overall financial strategy. Also research municipal bonds, agency bonds, utility and corporate bonds. As with stocks, select bonds backed by healthy companies or agencies.
CDs and Money Market accounts: These investments are very much like savings accounts in that they are usually insured (check with the bank you invest with) and offer very low rates in exchange for safety. Because of these low rates, it may be best to invest here only if you are near retirement, or will be paying for college shortly, or are looking for a place to park money while you look for other investments.
Any investment should be based on your own, personal investment strategy. No financial planner, friend, blog or anyone else can tell you what the best investment is for you. Take the time to determine what your long term strategy is first, and your best investment choices will be those that help you reach those goals. - 23200
About the Author:
If you find it's time to really learn to invest money, read more of Sue Calhoun's writing about the latest investing advice at her blog, SavingCashTips.com.
posted by X - Men @ 5:46 AM
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