Whether it’s 2011, 2012 or 2020 – a good investment strategy to invest without crystal balls. Any good investment plan takes into account both the investment choice and the time. If you can’t make money with this simple strategy, make sure only the few and lucky will make money.
Before you start developing a good investment strategy for 2011 and start moving forward, ask yourself an open question. Where do the most successful people invest to make a long-term investment (or where in the past)? The answer before the financial crisis was bonds, stocks and real estate. Today, the answer is the same for the average investor, and bond funds, equity funds and equity funds take a simple form. In the final analysis, if both of these three investment areas hold a tank – we are probably depressed and only a few lucky people or a smart speculator will invest.
A good investment strategy does not try to speculate or waste time in the markets. No matter what you hear, no one has a proven and consistent record of significantly outperforming markets in the long run. If they had, they would have invested a ton and kept their secrets secret. Well, why not decide on a good investment strategy that only makes one big assumption: will the United States grow and develop in the long run?
Investing in the above three areas is simple with mutual funds. Add a fourth type of fund called a money market fund to reduce your risk and add flexibility to your investment strategy. At today’s interest rates, this may not seem like a good investment, but it is safe and earns interest following current rates. To be more precise, with just 4 different backgrounds, you can develop a good investment strategy for 2011 and beyond and make money by investing in America’s future. To move from high security to higher risk and greater profit potential: you need to have a money market, medium-term bonds, large capital gains, and a capital real estate fund.
A good investment strategy to soak your feet is to invest equally in all 4 funds. The timing strategy does not require any judgment call or guess. After a year and then once a year, you transfer money to equalize the value of all 4 funds again. This automatically forces you to take some money off the table from your better-performing funds and transfer more money to those who are not. Over time, the net result is that when prices fall, you buy more shares and sell more expensive ones.
It is also a good way to make money by risking for a long time. Simply buying and saving is not a good investment strategy, and many average investors have faced problems in the past. Real estate funds, for example, were good investments for many years before the financial crisis. If you owned them and stopped for a while, you would have accumulated a lot of money there by 2009 and you would be at risk … it could have resulted in huge losses as a result of the financial crisis.
There is more to it than just simplicity in what I call a good investment strategy for 2011. This strategy uses only two time-tested investment tools: BALANCE & REBALANCE and DOLLAR COER ORAGING. The first is to keep you on the road while keeping the risk cover, and the second is to try to reduce your average investment costs by taking more when prices are low and less when prices are high.
With only 4 different mutual funds, you can build a good investment strategy with only moderate risk. People invest for a long time in bonds, stocks and real estate; and smart ones save a little money on a reliable investment for convenience. In the past, some people just got lucky and made money without setting a strategy. With a good investment strategy, you don’t have to rely on chance. If America thrives in 2011 and beyond – you should too.