The Yin and Yang of Investing in Today’s Markets

It is a confusing time for investors. For the last two years, market experts, forecasters, and pundits have been consistently wrong about the economy and the direction of the markets. Despite these issues, I am encouraged by the many opportunities available for investors to earn solid returns. But before I jump into some investment ideas […] September 15, 2023 [Option Sensei] [The Yin and Yang of Investing in Today’s Markets]( It is a confusing time for investors. For the last two years, market experts, forecasters, and pundits have been consistently wrong about the economy and the direction of the markets. Despite these issues, I am encouraged by the many opportunities available for investors to earn solid returns. But before I jump into some investment ideas that will work, let’s review some things not to do… - Don’t get caught up in any “make money fast” schemes, whether it is hot stock tips or magical trading systems. As my fellow Investors Alley editor Tim Melvin noted[ last week]( “The statistics on retail trading are readily available, and the evidence shows that over 90% of individual traders will fail to make money over time.” - Don’t buy stocks based on a hunch or because you like the product or see the news calling it the next hot thing. By the time a stock becomes the “next hot investment,” most of the money has been made by investors who bought before the hype started. - It’s a small thing, but don’t use stop-loss orders. In my experience, they turn into guaranteed losses. You should invest in stocks that, if they go down, you would want to buy more shares. Don’t let predictions of a pending market crash drive your investment decisions. I have been in this business for more than 30 years, and there is a new “crash is coming” prediction every week. None of them come true. Let’s look at some current investment opportunities with those dont’s out of the way. Over the last two years, the Federal Reserve has massively increased interest rates. When rates on everything interest paying were near-zero percent, it made little sense to invest in safe but no potential returns investments. Money market mutual funds (MMF) now sport yields around 5%. A few years ago, these funds paid a fraction of one percent. MMFs are 100% liquid and earn interest daily. I recommend using these funds for emergency cash or as a short-term parking place. I don’t think MMFs are appropriate as long-term investments. They are safe, but interest rates could fall quickly. Bond investments allow you to lock in higher interest rates for longer terms. A bond pays a fixed rate of interest until a specified maturity date and the face amount at maturity. Typical bond mutual funds or ETFs are not a good idea. They don’t hold bonds until maturity, so you don’t get the benefit of a certain return on your principal. I recommend using the Invesco BulletShares series of bond ETFs. These funds own portfolios of… Continue reading at [INVESTORSALLEY.com]( SPONSOR [MAJOR PREDICTION: The No. 1 AI Small-Cap Stock Opportunity of the Decade]( Did you see the story in the Wall Street Journal the other day? Only one out of five Americans think their kids will be better off than they are. Frankly, that's un-American. I don't care whether you have $5,000 in the bank, or $5 million... Whether you have a blue-collar or a white-collar job... This impacts YOU. In our Exclusive Presentation, we're giving you a chance to reach out and grab what may be the #1 A.I. Small-Cap Stock Opportunity of the Decade. This could change your financial situation FOREVER. [Click here to learn more.]( NOTE: If URLs do not appear as live links in your e-mail program, please cut and paste the full URL into the location or address field of your browser. [Privacy Policy]( | [Terms & Conditions]( This is a paid advertisement.This is not a solicitation for the purchase or sale of securities. Readers are encouraged to conduct their own research and due diligence, and/or obtain professional advice, prior to making any investment decision. Advertisements and sponsorships are provided as a service to Wealthpop users . Wealthpop is not responsible for their content, services or products. The statements and opinions contained in this advertisement are not those of Wealthpop, and Wealthpop disclaims any liability for or arising from such statements and opinions. You are hereby advised that Wealthpop is receiving a fee as compensation for the distribution of this advertisement. [Click here to unsubscribe]( Copyright © 2023 Wealthpop. All rights reserved. Magnifi Communities, 1 Penn Plaza, Suite 3910, New York, NY 10019