Investing Strategies During Uncertain Times
Investing money is something that many people do, while others may be scared given the recent economic downfall that is taking place worldwide.
The truth is that there is nothing to be scared of if you understand what is known as wealth cycles and how they have predicted, with fair accuracy, the ups and downs of the investment market and invest wisely. Investing money is simply when you place your money somewhere that will give you some form of return on your investment that you continue to build upon for financial security and hopefully wealth.
The easiest way to look at investing money is when you set aside monies in a savings account; the financial institution gives you a small percentage of interest that increases the amount you deposited and continues to earn as long as you leave it in the account. Investing money is the same thing except you are purchasing shares of a company in which you receive dividends based on company earnings and hopefully an increase in the value of the stock you purchased. In some cases you may invest in something like oil where as the price goes up so does your investments value. Others may invest in real estate or precious metals to reap the rewards when the cycles for these are at their peak.
You should pay attention to wealth cycles before deciding where to invest your money.
A wealth cycle will show that when real estate and the stock market are on the rise then precious metals will fall at a similar rate. It will also show when precious metals rise, the stock market and real estate are actually falling. The key is to sell or unload your investment when it is at its peak in order to purchase the option that is at its low. Doing this allows you to invest and purchase more of the item at the bottom end of its cycle. As the wealth cycle reverses over time and your investment increases in value you repeat the process. Each time you do this you are increasing your own value by a larger percentage rate than sitting on something and riding out the highs and lows for a small dividend or risking a loss.
There is another factor that you need to be aware of when investing money and this is generally the reason for the upturn of precious metals during a wealth cycle. That factor is the government flooding the market with money to offset recessions. The problem with this is the value of the dollar drops, the price of goods increases, people buy less and stocks fall. At this point precious metals increase in value as investors move towards a tangible asset that will never reach a value of zero and the market for gold and silver swings upwards while real estate and stocks lose value.
The wealth cycles over the last fifty years are very revealing when it comes to demonstrating how a person should invest.
Our economy was strong and our money was backed by gold bullion giving it an actual value. When The Nixon Shock occurred, a presidential decree that made it possible for our currency to no longer be backed with bullion, we started printing money at whim to alter the economy. This left us in a climate that was now relatively unstable with the value of the dollar being decided by consumer demand and advancements in technology. Precious metals remained a nice option for those investing money. As our technology increased, stocks started to soar and precious metals fell to an all time low. People invested everything in the stock market but became greedy and held onto the investments too long until the bubble burst. When investing money you can look now at the wealth cycle from the last ten years. Real estate, stocks and other commodities have been volatile and on the verge of collapse at different times. Precious metals have risen steadily and outperformed other investments during this period. Those that bought these at rock bottom prices are now sitting on a mound of money and precious metals are still rising.
The point is you need to pay attention to the market. As long as they increase it is all profit and so long as long as you sell at the peak or on the upturn. Remember if you hold onto something beyond the peak you have lost out on free money. It takes a lot of patience but it’s really not difficult to see when it’s time to start investing money elsewhere. The point to investing is to make as much as you can at all times. To do this you simply pay attention to what is on the rise and what isn’t.
Right now we are looking at another real estate fall which will in turn cause precious metals to again rise. It may not happen overnight but it will happen as the wealth cycle dictated. You want to buy low, sell high, and do not continually hold onto anything until you retire because the value may not be there. The days of a company having a growth that sends 10 dollar shares to 1000 dollars per share are probably never going to happen again and why should others benefit from your money before you do?
Investing money is not as difficult as you may think.
When purchasing stocks simply do your research and look at the trading trends. Is it a major corporation just affected by the current economy or is it an unproven high risk company that thinks their widget will save the world? Just use common sense and pay close attention to the trends. Look at the past and what made investors money and when they should have sold to prevent loss. It’s really not mind numbing or hard when you look at wealth cycles and compare it to the economic roller coaster over the last century. Before you know it you will be successfully investing money with a winning philosophy and receiving large returns for your future and that of your family.
