Binomo Expert Interview

Most folks know where you can invest money in good times, but when it appears like the sky might be falling, knowing where to invest money and how exactly to invest it becomes a puzzle. In 2014 and 2015 good investments may be hard to find, particularly if yesterday’s good investments like stocks and bonds tank. This is simply not a prediction, but rather a “heads up.” You can’t prepare if you’re not aware, so let’s take a closer look at the sky.

We all know that safe choices like money market funds and bank savings accounts don’t appear to be good investments for 2014 since they pay peanuts. But what if the sky starts falling: either interest rates ignite and/or the currency markets tanks? In any event or both… where to invest money is the question of your day. Safe choices will 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 or so. If interest levels soar from today’s record-low levels, neither stocks nor bonds appear to be good investments.

For over 30 years interest levels 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 rates is in the cards (as the government unwinds its stimulus). When that happens, bonds will no longer be where you can invest money for higher interest income with relative safety. Bonds are NOT good investments when rates rise; they lose money. That’s the way it works. How exactly to invest in bonds in 2014 and 2015 if rates take off: lighten up and choose safety.

Stocks had been very good investments five years running because the year 2014 began. This was at least partly because of government stimulus and cheap money. In a sense, stocks were where to invest money because nothing looked cheap except for money (short term interest rates were set at about one-tenth of one percent). With a gain of over 150% in five years, the downside risk in the stock market is mounting. This begs the question of how to invest money in stocks if the sky starts to check ominous.

Remember that the currency markets is truly a market of stocks, which means that almost all stocks get hit when the market crumbles – but at least a few will undoubtedly be good investments. And the ultimate way to find good investments in a negative market would be to watch the purchase price action. For example, as the market climbed 30% in 2013, some gold stocks were down about 50% by early 2014. Unless you know how to invest in or how to select a specific gold stock… you may want to know where you can invest money to have a piece of this step. The answer would be to invest money in gold funds and let them pick the gold stocks for you personally.

The end result is that in 2014 and 2015 investors face an uphill battle, because both stocks and bonds look pricey. That presents a fresh challenge to today’s investor in search of where to invest money. binomo login We have been facing uncharted waters in this modern electronic world, where no one really knows how exactly to invest or where to find good investments for the future. This consists of 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’ll have a cash reserve, so that you can make use of the situation as the skies darkens. Smart investors are always searching for where to invest money next, especially when a big change of trend is in the cards. At such times, yesterday’s underperforming sectors or industries often become today’s good investments.