Sunday, July 19, 2009

Investing in the Present Investment Market

Investing in the Present Investment Market

Investing in the present investment market is not simple, not that investing ever is.

But you can simplify it a bit by classifying your aims. Financial media reports and suggestions often fail to point this out.

Examples:
Are your goals short term or not? Are you taking proper consideration of your age? What are your feelings about taking risks?

Also consider the economy. We have more than a normal, ordinary recession today. It may not bounce back for a couple of years.

And inflation will be around, probably quite heavily, in a couple of years. So economic stagnation and high inflation could be the type of economy that can stifle corporate profits. It means bond purchases ought to be in bonds with relatively low duration.

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