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Investing Strategies for the Current Economic Cond
Posted by: Leona Jones from Dotsearchmedia on Monday January 28, 2013 at 12:55 AM   (-08 GMT) | Comments (0)
Tags | Savings | Categories: | Economy

The current economic situation has left most investors trying to manage emotions of relief and panic. The economic meltdown prompted investors to deduce ways through which they can avoid risk in the financial crisis while investing. But the economic recovery pranced on most investors unguarded, leaving them reworking on their investment strategies. The volatility of the current economic situation peppered with risk of extreme loss of profit which has left most investors in the middle of a maze again.

So, what will you strategize before investing in the current economic condition? Here are some ways to help you make better decisions.

Invest in precious metals. Silver is one precious metal which isn’t affected instead stays afloat during times of economic crisis. It is a dwindling metal and thus much wanted. Moreover, it is used widely for the purification of water, making jewellery and in electronic industries. Purchase silver bullion as it is cheaper and can be stored in your home without you having to display it in your bank account. You can also invest in gold as its rate isn’t really affected by inflation. Petroleum and technology are two commodities in high demand even in times of inflation. Thus various commodities are worth investing in but like before every investment, profound research, diverse suggestions and then a properly thought decision must be the correct way of investing.

Aim for high yield as it reduces risk and leads to an improvement in efficiency when concerning stocks and bonds. But like every other investment, high yield comes with risk but if you work on downside protection, risk can be avoided. The income must be allowed to compound over a period of time to gain profitable returns.

Do not invest all or major part of your money in one place. Diversify your investments and keep a backup. It also helps in determining the rate by which you will gain returns. Over a long period of time stocks result in being reliable than bonds. Do not spend from your principal, rather from interest. Do not measure your returns with someone else’s. Measure them with the objectives you set prior to gaining your returns.

Maintain an emergency fund and put money enough to keep you afloat in cases of an unexpected unemployment or a severe financial crisis. You never know what might happen just as credit companies and everyone else was carefree before the economic depression of 2008. Also pay off your high interest debts first. Credit card debts never help in times of economic crisis. While you have the ability to pay off and clear all debts, go for it and be relieved.

During times of economic instability, scam artists love to scoop as much money as possible. They are too clever and study the market closely and approach or lure investors into their trap, taking away a gargantuan amount of money. There are many questions and ways found on the SEC site to make out if the person approached is a scam artist or not. It is imperative to discuss thoroughly before investing. Precaution is important for once you’re fooled; there is no way of recouping what you’ve lost.

I’m Leona Jones and I write investment related blogs and I’m currently focusing on ppi claims related articles.
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The questions raised about investment in stocks
Posted by: Leona Jones from Dotsearchmedia on Wednesday December 19, 2012 at 9:37 AM   (-08 GMT) | Comments (0)
Tags | Investing, | Stocks | Categories: | Finance - Managing your money, | Financial Markets - Stocks
The last few years have provided the USA with a rude awakening; prior to the Collateralized Debt Obligation (CDO) problems everyone was fairly relaxed. Their real estate was rising in value and credit card companies were happy to provide all the credit needed to buy as required.

Things changed fairly dramatically and as the recession set in, many people lost your jobs unexpectedly. The balances on their credit cards were just one of the problems they faced. Once anyone defaults on a payment their credit score is damaged; their eligibility for anything other than bad credit loans is in danger.

Although there are signs of the economy moving slowly ahead again, there is still the need for extreme caution. The current impasse between the Republican House of Representatives and Obama’s Administration is still to be resolved; the fiscal ‘cliff’ is approaching quickly. Unless there is a resolution before 1st January, spending cuts and tax increases will kick in.

Experts believe that that would take the USA back into recession; more people would need those bad credit loans if that happened. Even if that is solved as it must surely be corporate figures still reflect the problems that still face the world’s economies. There are no forecasts that predict USA growth in 2013 reaching 3%, the level that can reduce the unemployment statistics to the pre CDO level and allow more people to borrow again, even bad credit loans.

With depressed demand comes static business and there is certainly a case not to invest in stocks until there are clear signs that the problems have gone. There is not necessarily a correlation between the return on stocks and a weak economy but certainly it is a time for caution. Stocks however have actually produced a 15% return this year against a 2% growth in the economy so it is a subject that requires some research.

That research has been done over a prolonged period of time. The areas of research include GDP and business profit, forecasts of growth in earnings, interest rates, Federal Debt and historical returns. The conclusion was that there was no conclusive strength in any financial research that could accurately predict the performance of stocks in the following year. The timescale of a single year’s forecast as simply just too short.

There has often been a view that coming change has been factored into the market anyway. It has happened at times with changes in government. The market movements resulting from a different Administration often begin far before a result is confirmed. Although there may be a sudden fall for a few days, it is purely a temporary phenomenon because the market has already readjusted.

There may be some stocks which suffer more than others based upon the Administration’s expected targets. Financial, energy and environmental companies each face different challenges. Financial issues of regulation can for example hit banking stocks. The increased pressure on energy companies to sign on for environmental policies remains an issue.

There might well be an argument that in an atmosphere of low expectation, it is a good time to invest. Ultimately by all means take advice but there may be a number of different viewpoints. The best route is probably one of balance; do not over extend yourself and find yourself in financial trouble; you may find your future options may be bad credit loans. There is certainly a case for looking for opportunity however.

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