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The Best Investing Options for 2010 and Beyond

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June 24, 2017

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The Best Investing Options for 2010 and Beyond

“The economy depends about as much on economists as the weather does on weather forecasters.”

 

The economy may be clearly unpredictable but recent numbers have not been that bad. The current year is drawing to a close, the economy is showing signs of recovery though fears persist, and you are thinking of investing again. So, what are the best investing options for 2010 and beyond? We offer a few suggestions.

 

First of all, your investing strategy should be diversified in order to deal with the some prevailing uncertainties. What if the recovery is longer in coming, what if the US dollar continues to fluctuate, what if the current low interest rates rise disproportionately in the coming months, what if…..? You get the idea: there are a lot of “what ifs” and your investment strategy should take into account most, if not all, of them. therefore, the recommended diversity.

 

Moreover, diversity does not extend only to your investment instruments but to the markets as well. In today’s globalized world, it has become easier to invest across countries, and you should take this opportunity especially with the tremendous growth projected in these emerging economies. To hedge your risks, you must invest at home as well, but emerging markets should certainly part of your portfolio.

 

Even amongst emerging markets, there are certain nations where investment is recommended. These are those who form the famous acronym BRIC – Brazil, Russia, India and China. However, you should be careful where you put your money in. It is a fair idea not to buy stock which is selling at more than 10% premium over its Net Asset Value (NAV).

 

You should consider putting your money in:

 

1. Real Estate – In times of recession, real estate is always a good investment. With assets available at low prices and the market recovering quite, this is the superior time to purchase with a long-term horizon. Besides the US and BRIC nations, France and Australia are also good bets. You can invest in this sector directly or through REITs (Real Estate Investment Trusts).

 

2. Stock Markets – Many experts approach the Dow to reach record highs in ten years; on a long-term perspective, nothing beats investing in the stock markets. Although the Dow has gained significantly in the last year, you should not invest expecting short-term gains, that may or may not materialize. You may consider hedging your risk by investing systematically. Besides transacting on your own, you can also look at mutual funds to take away some of the burden of research.

 

3. MLPs – Master Limited Partnerships may not be that well-known, but offer consequential returns with the added benefit of constant income. Since their businesses are centered on commodities that are least affected by recession, their returns are steadier as compared to stocks. Moreover, with the recent introduction of MLP mutual funds, you have the choice of investing in multiple MLPs with one instrument.

 

4. Bonds – While bonds have traditionally been a acceptable investment, think about shortening your maturities and cutting down on your exposure. Interest rates are soon expected to grow and that will send bond values down, and long-term bonds will get hit the hardest. If you hold long-term bond funds think about moving to intermediate-term and short-term bond funds.

For more information on mlp investments, visit our website.

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