Guide To Investing – Out with the Old, In With the New...

 

All the Rules of Investing changed in January 2009.

Why? – Three Big Reasons!  And, investing your money like you did in the past is positioned to get you into trouble ahead.

What happened? – Market Conditions and the Investment ‘Tools’ of the Market are vastly different than what you’ve previously seen in your lifetime.

National Debt exploded, Market Volatility – down and then up – roared, and the range of Asset Classes (where you could easily invest in the Markets) exploded. 

One at a time, here.  Debt – the huge elephant under the rug – like nothing that we have ever seen before – and growing!  Will America default on its sovereign debt?  This was unthinkable, and now it is a real possibility.  The European Nations can bail Greece out – but who bails America out?  No one is big enough, and can afford to do that.  Projections by the White House’s Office of Management and Budget (OMB) recently projected a $8.5trillion deficit over the next ten years – while the New York Times said that the government’s projects are historically too optimistic – so it could be more. 

So, the first of the three reasons investing has changed – is that Interest Rates will be thrust higher by this rocket fuel glut of debt – and this will play havoc in our domestic Stock Market.

Second, Market Volatility – the Stock Market took a strong downward fall to March 2008 – and then a climb back up to the current 10,500 level in the Dow – get ready for another swing down, because it is coming.  The ‘risk’ is high in the Market now, with the climb back up, and economic conditions including employment, housing, consumer confidence have not improved for a sustained foundation for growth. 

Thirdly, Asset Classes – this is the focus of this Article – given the understanding of present Interest Rates and Market Volatility.  Here’s what’s different about investing today – and it is vital to understand for the success of making money with your money.

Now the Investor – you and me – can easily use ETFs (Exchange Traded Funds) – which by choosing them carefully allow us to make money in all market conditions.  Before, only the big traders could make money in down markets – now you can too.

And before, only the big traders could readily invest in foreign markets, commodities (like gold, silver, corn), interest rate swings, the dollar, the inverse of the American Stock Market and other areas that can be fruitful when the our Stock Markets are falling apart.

The question to ask is:  Which Asset Classes (like the list I just mentioned) will offer the best results – no matter what major shift is going on in the Market?

In the past, many people put all of their eggs in one basket – The American Stock Market – either in individual stocks or mutual funds comprised of homeland stocks.  They invested ‘low’ hoping to sell ‘high’.  This methodology is out the window.  This methodology is set to catch investors short over the next three years.

Today, investing requires much more flexibility.  It requires the use of Asset Classes which extend well beyond the American Stock Market.  We will be talking about these Asset Classes as we go along – for your opportunity to Make Money, Invest Money, Grow Money and Protect Money.  This is how you’ll be a profitable Investor for tomorrow.