Investors in various stock exchanges around the world have good reason to be a little nervous. After all, the major global economies of the world have been turning in less than stellar performances for the last several years. These days, knowing where to invest has become a fairly dicey proposition. There are so many markets, so many variables, that one really can't be sure with any degree of confidence where the true opportunities lie. As a result, in an effort to secure the best returns possible, investors are trying many different tactics.
Spreading the Risk
Not relying on one individual stock or even a basket of similar stocks has always been the advice of many industry experts. Today more than ever, it makes perfect sense to throw a little money around in various directions. While the NYSE and other US exchanges have done quite well in the last few weeks, one can't be sure that the trend will continue forever. The recent jobs report shows that the US economy appears to be slowly getting back on track. However, there are many potholes and trapdoors along the way which could send investors scurrying in the opposite direction.
Take My Apple, Please
As an example, just look at what happened to Apple. A year ago, they were the darling of Wall Street and the highest valued public company in the world. Until about six months ago. Then all of a sudden, doubts arose in the eyes of investors as to whether the company could continue to produce a constant stream of innovations which powered them to the top in the first place. They're still highly profitable and highly desirable, but not everyone is so sure that they will continue to innovate in their various fields.
Where's the Action? Many investors are looking at emerging markets as one area in which to invest. Many countries, which are still derisively referred to as Third World countries, are in fact enjoying higher GNP growth, as a percentage basis, than some of the powerhouse industrialized nations. Therefore, it makes sense to put some money into these markets and watch them grow. Funds that take a global view seem to be far more popular than any country specific market, such as the United States or even the UK.
Hitting the Target A new type of fund has become quite popular with investors. Generally referred to as “targeted absolute return” funds, they attempt to provide a return to their investors no matter what. This means having to sometimes take short positions as well as other complex financial manoeuvres, in order to try to provide investors with a positive return. From the popularity of these types of funds, it appears that investors are willing to accept potentially lower returns, as long as those returns are somewhat guaranteed.
Use Best Practices in All Your Financial Affairs Being smart about your money does not apply only to investing, but also to many other aspects of your financial life. These can include closely monitoring the costs and relative value of any credit cards, the long-range objectives for a mortgage, even buying or selling a house. Although the housing market is beginning to improve, there are still a lot of opportunities available. For any homebuyer I would suggest looking online and searching for ‘house quick sell’ for as much information as possible. Armed with this intelligence, one can make far better buying decisions.
