The 3 Best Ways to Invest For Long Term Profits
By [http://ezinearticles.com/?expert=Chadwick_Farrell]Chadwick Farrell
Now the economy is starting to turn up, many people who were reluctant to investing in the stock market are now becoming more interested in the financial markets. I will outline the three best ways to invest for long term profits while going through a down market.
Stocks
Even though we are currently in a bear market, equities tend to outperform other asset classes and should not be entirely ignored. Be resilient in your stock pickings. During periods of recession people are not able to spend money on big ticket items like cars or high end electronics. Instead, people put their money toward necessities like food or utilities. During these down times, these are the stocks you can focus on to make profits during a recession. Stocks are good investment vehicles for long term profits.
Mutual Funds
In the face of a recession some mutual funds are better than others. One strategy to combat hard times would be to invest in bond mutual funds. These funds are particularly popular with risk-averse investors. Funds made up of U.S. Treasury bonds lead the way, as they are considered the safest. the risk of default is eliminated and the fund provides principal protection. The next best fund would be a municipal bond fund. these are issued by state and local governments and they leverage local taxing authority to provide a degree of safety. these are relatively safe investments for long term growth.
Exchange Traded Funds (ETFs)
ETFs provide a simple way to implement a professional style approach to portfolio management providing diversification and reduce overall portfolio risk. these investments are easier to monitor as they represent a core holding, the number of stocks can be decreased resulting in a portfolio that is less complex and easier to understand.
These are three investments you could use that will promote growth and profits on a long term basis. You can invest in these investments during a good or bad market.
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Sunday, November 15, 2009
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