What are the best investment vehicles right now in the existing state of the economy?

Question

What are the best investment vehicles right now in the existing state of the economy?

Answer 1

You need to define your investment strategy yourself.

- What are your goals 3 years to 10 years from now.

- When will you be needing money the most?

- How much can you contribute into your capital base on a regular basis?

- How much risk can you handle?

- Based on your risk tolerance, define the ROI that can help you acheive your financial goals soonest.

Such a plan is recession-proof, not easily affected by a downturn in the economy, and profits best when the economy is moving up.

Hope this helps.

- Jim http://jsforex.blogspot.com

Answer 2

value plays in the stock market. Look for those stocks that are trading below their historical value averages. VAlue, Value, and value. These are times when you purchase the out of favor beat up stocks that still have a financially stong future and decent to better than decent growth expectation. This economy is in a regional recession and each sector will vary. There are bull markets, you must research to find them. Additionally, a bottom may be near. Hard to tell but hold on tight I think you may be able to purchase quite a few of discounted stocks. Good Luck!

Answer 3

Good question.

You need to ask yourself "What kind of vehicle do I want?".  Do you want the safest investment vehicle?  Do I want the greatest possible return in this vehicle?  How much risk do I want to take?  What is my time horizon for this investment vehicle?

I would look at the best investment vehicles of tommorrow.

Things that are unattractive now, will probably appreciate in price in the coming years and the things that are "the best" right now will probably decline in value.  (This is how the market has worked for decades)

The financials (banks, brokerages) have been hammered.

You could buy them individually or pick up the XLF, which is the financial index fund.  Municipal Bonds are giving off 4-6% tax free right now.  That is historically very high, considering their relative safety.  The S&P 500 is trading at a significant discount to historical standards based on its PE multiple.

If these investments are too risky for you, a F.D.I.C. insured CD might be what you are looking for.  Wachovia was the best one that I could find (recognizable name) with a 4.25% one year CD.

Good luck!

Answer 4

Consider a hybrid, the prius of investments

A stock fund that acts like a cd, will give you an advantage over CD's- better rate + chance for capital appreciation

and will give you some stability

consider : AGD pays abour a 15% dividend on a monthly basis (1.25% monthly) ,owns about 45% European Equities which with currency disparity makes it quite appealing, charges about 1% annually.

Alpine Global Dynamic Dividend Fund (the Fund) is a diversified, closed-end management investment company. The Fund's primary investment objective is to seek high current dividend income. It also focuses on long-term growth of capital as a secondary investment objective. The Fund may invest in equity-linked structured notes. The Fund invests in various sectors, including industrials, financials, utilities, telecommunication services, materials, information technology, healthcare, consumer staples, energy and consumer discretionary.

http://www.alpinecef.com/

Answer 5

i tend to focus my investments on mega trends. look around and you can't fail to be aware of continued price rises of commodities. use this to your adantage and invest in some commodities investments vehicles such as Exchange Traded Funds.