Categorized | Investing

Where to Invest When the Market is Down

Investing is something that we all need to carefully pursue in order to provide financial resources for our future. How can you invest when times are tough and to find a way to increase your portfolios profitability when everything out there is in the red? Although times may be tough in a number of ways, there are several strategies you can use when the market is tough to increase your investments potential. Here are some tips that will help you expand your portfolio when the market is down.

Tip # 1 – Never try to time the market

Many people try to time the market and this is one of the worst things you can do as you undoubtedly will end up hurting your portfolio more than helping it. Not even the best investors like Warren Buffett can time the market. Even the best stocks out there will end up getting dragged down by the market, especially when unemployment is high and consumer spending is down. Any type of investment in the stock market will have a certain degree of risk and choosing to steadily invest your money will allow you to have a chance to continue making money even when you have some stocks that are losing money. When the market is low, this is the time to buy up some great stocks as they will eventually rebound and can provide you with a huge profit margin in a year or more as the stock market begins to rebound.

Tip # 2 – Invest in mutual funds

As the market is down one of the best investments you can make is in mutual funds. Mutual fund investing will allow you to take on a high degree of risky stocks that could otherwise destroy your investment portfolio on their own and will balance this risk with other low-performing stocks that are consistent.  Mutual fund investing is a safe and smart way to grow your retirement and with the right type of diversification you will be able to balance the risk and earn more money than what you likely can if you try to invest on your own.

Tip # 3 – Real estate investing

A great place to invest when the market is down is in real estate. The real estate market has fallen tremendously and smart investors can pick up a lot of great deals and hold the property for a time and sell them when the market rebounds again. Invest in storage unit facilities and other places that have potential to grow tremendously. Storage unit facilities are one of the best investments as they will grow your money quickly.

Tip # 4 – Bonds

Bonds provide a very safe investment and are a great addition to your portfolio when the market is down. They will help to leverage the risk from the stocks you have and they will give you a guaranteed return, even if it is a very small return. US Treasury bonds are a great option to use as they are backed by the Federal Reserve and they will offer you a good return in about 7 to 30 years.

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