Where to Invest Money Today - Follow the Basic Commodities
If ever there was a New Year's resolution you would want for next year, it would have to be to do what it takes to not be staring at a devalued portfolio, as you did in 2009. So let's look at a few ideas on where you should probably see your investments headed this year, considering how 2010 seems better than 2009, but only just barely. Recessions have a habit of letting go very slowly. Certainly, the stock markets did seem to look alive ever since June or July 2009; but it all seemed a little surreal. What seems to be a little life back in the stock market could just have been the effects of all the money poured in by that economic stimulus package. The government also seems to have an impact on lowering the interest rates, to bring more credit around. But all that it's done for us investors is to make our investments nearly completely unprofitable, and made a lot of money available to junk bond spinners. When everything looks this unfamiliar, how do we make up our minds where to invest money this year?
It is certainly tempting to not stray outside of the blue-chip circle - companies whose products sell not only locally, but all over the world. Companies like Apple or Monsanto look great. Their products are in strong demand everywhere, and they have a certain brand cachet that will make it difficult for them to lose market share. There are lots of them; companies like Kraft or Procter & Gamble sell quality necessities from foods to consumables and you cannot go wrong with them either. How about some of the biggest tech companies in the US? Companies like Microsoft, or Adobe are foolproof. They never had a need for much debt, and their strong sales make them always cash-rich.
Of course, these are companies that deal in man-made value. The personal finance experts and stock analysts seem to really like the security of regular commodities as a place to invest their clients' hard-earned money. When their clients ask them where to invest money in today's miserable economic climate, conventional wisdom today is going for commodities that just cannot go out of style. They expect a great deal of price rises on basic staples like metals, grain and oil. There is so much grain being exported to developing countries for use as livestock feed, that investing in agricultural futures is great. You could ask your broker about this.
The perennial favorite in times of uncertainty like this, is always gold, and this time is no exception. But you could really try to go with the psychology of the average American, and buy shares in whatever they are likely to be interested in now. With everyone out of a job, and thrift looking to be the mantra, buying up shares in companies that sell cheap commodities should be a great idea right about now. The answer to where to invest money this season, is a no-brainer - it should be with enterprises like Wal-Mart, or CarMax, the national chain of used car outlets. You could really use your imagination to zero in on whatever will be in demand in today's climate. Healthcare stocks can never go wrong; not even in today's uncertainty over healthcare. You could invest in PrimeCap Odyssey Growth, an investment company that puts your money in healthcare. In tough times, you just can't go with the crowd. The aim now is reasonable growth, and absolute security. Investing in areas that cannot ever slide in demand, it's just the thing to do now.
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