Expanding Your Investment Repertoire in Uncertain Times

If you have begun investing in recent years, you may have only had time to try one style. Unfortunately, a single investment method is usually not enough to build wealth and security. We live in an uncertain and unstable world. Today, the American economy has been more than 94 months since it caused a global financial meltdown. This is the third longest economic expansion in US history.

While there is no hard and fast rule by which economies start to collapse, it would seem we’re certainly due for a market correction. With prices soaring to untold heights in the equities market, and political upset always threatening to boil over, it pays to become aware of other ways to invest in a confusing time. Here are several ways.

  • Forex is an excellent way to grow your money regardless of what is going on in the global markets. This is because, unlike equities, you can get great returns in Forex without actually owning anything. If a global currency tanks, you won’t lose money, because even if you are speculating on the price of that currency you don’t actually own any of it. Modern investors use their insights to achieve significant returns in the Forex market, no matter what’s happening in the “real world”. Sometimes it’s easier to make money this way in an economic freefall, because you can make easy judgments that one or more currencies are going to decline, fast and far. There are many helpful tools out there to help you compare Forex brokers including ConnectFX’s comparison chart.
  • Bonds. Bonds are the less sexy addition that people tend to make in their retirement accounts. People like to think of bonds as a safety measure, but in some economic climates they can actually have higher returns than equities. It’s important to learn about investing in bonds, because if you are only concerned about investing in stocks, you may lose a lot of your money when the next market correction comes.
  • Real Estate. Right now the stock market is frothy. Frothiness is a word used when prices exceed the actual value of companies. Today, there are a variety of companies whose stocks are soaring, but who are not actually making a profit yet. This has motivated some to call real estate, and in particular the single family home, to be the best investment in 2017. Depending on your market, real estate can be a great place to park money, especially if the rental market is strong or the underlying asset value of the property relative to its location is going to be high regardless of what happens to the economy.

There are other ways to invest. If you are serious about being an investor through the thick and thin of different economic environments, you’ve got to learn new tactics. No matter what happens in the global economy, there are opportunities to be had. People who only know one form of investment are the ones who lose their money when the climate they need to survive changes.