If you want your money to go farther, you need to invest it in the right way. However, this is easier said than done. That is why it is important to have clear strategies that are proven to work. That way you can avoid common pitfalls that other investors face. There is one main investing tip that you must follow, otherwise you might miss out:
The stock market has been in reaction to the recent rate hikes by the Fed. However, this is not the only thing that has been affected. If you have any bond holdings, then you should scale them back. This is the number one tip for the following year. Here is what else you need to know:
Asset Classes
Bond holdings are going to take a nose dive in terms of the worth of the class to your portfolio. The more interest rates you pay, the less that goes back into your pocket at the end of the day. This is not something that is sustainable. Eventually, you will need to get into other assets. Otherwise, you could continue to see your savings and investments drained away by interest rates. You want to pay yourself, not your bankers.
Silver and Gold
So, then, what are the asset classes you should be getting into? One of them is precious metals like gold and silver. The great thing about gold and silver is that they hold their value even better when bonds are not doing well. They seem to have an inverse relationship with bond holdings.
The reason is quite simple really. Gold and silver are real, tangible assets. As the fiat currencies, which are not tied to any real numbers, are arbitrarily manipulated by the fed, these real physical assets increase in value. Everyone wants to put their money somewhere safer. The more of these you hold, the more you will make.
Timing is Key
However, once everyone knows about it you might be too late. The key is to get in while the going is good. You want to be one of the first people to deleverage your bonds. If you do this in the right way, and at the right time, you can enjoy more appreciation on your investments for the coming years. Just keep in mind that not all gold and silver are created equally.
There is also the ability to have mining shares. This does not get you physical gold or silver. Instead, it lets you profit from the mining of these metals from the earth. It is an indirect way to put your money to work for you as the interest rates on bonds are untenable.
When it comes to investing, you have to have a solid plan. Otherwise, you could simply be flailing in the wind. So make sure not to spend a dime before you really understand the strategy above. That way you will be able to enjoy a higher rate of return for your money now and into the future. The result is a healthy wallet and peace of mind.
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