Why Invest Your Money – and In What

 

Why invest your Money? – Great question for the money that you have gathered – and in what?.

Let’s establish some premises.  First the American economy is improving at this time.  We’re seeing this in rising car sales, improvements in manufacturing, gasoline demand up and a surge in economic activity as consumers spend and retailers restock their shelves.  Consumers are even shelling out for the discretionary items in this period of recovery. 

This economic recovery is riding high on the huge, massive input of dollars from the Federal Government.  And this tidal wave of money is primed to continue for this year. 

The rough economic times may not be over – and now you look carefully at the surges and pull backs in the market and no longer think that ‘investing and forgetting’ is a good plan – right?

Now you ask ‘why to invest’ and where?

Asking ‘Why To Invest’? – is where the fun starts.  And, if you have been following my comments and taking action – you have made money, and that’s fun.  The JJC’s (the ETF for Copper) is up 23.47%, the GLD’s (the ETF for Gold) is up 8.31%, and the FXI’s (the ETF for the Shanghai Stock Market) is up 15.32% — since I highlighted these investment choices at the first of February.

It’s fun to Make Money, Invest Money and Grow Money.  And, it takes getting in the game.

My two picks right now – the Australian Dollar and Energy Stocks. 

While the American dollar is showing a good rally in value – the Australian Dollar is rallying even harder than the Greenback.  The Australian economy is so strong that Australia’s central bank recently raised its benchmark interest rate by .25% (where in America the Fed has been doing all in its power to not raise interest rates to support the economy).  This move is enhancing the Aussie Dollar.  The FXA (the ETF for the Aussie Dollar Index) will get you moving.

Demand from countries like China and India – with booming economies – are driving the need for natural resources, including energy to new heights.  Compared to the rest of the market, energy stocks are cheap, as energy stocks have underperformed the Dow all year, and are now poised for gains.  The XLE (the ETF for a broad basket of energy stocks) – will give you a range of energy companies that are set to benefit from global economic expansion. 

Take this into consideration to review your investment choices.  Both the Aussie Dollar and energy stocks represent intermediate term trends – so you can wait for a pull back in price and then buy.  Be careful and watch your investment. 

 

Please pass this Article along to your friends and family – use the Twitter and Facebook links next to the Article – to encourage financial understanding

Please add your experience by leaving your comment below the article on the website.  We want to hear from you.