Stock Investing

Stock investing is the growth engine of your investment portfolio

Stock investing is the growth engine of your investment portfolio, but in 2014 and beyond your best investment strategy could be to cut your investment exposure in stocks (also called equities) and stock funds (also called equity funds). Face it: equities and some stock funds have run up 150% in the past four to five years and this run could be about over. Why invest money here (more money) now?

Stock investing is the growth engine of your investment portfolio, but in 2014 and beyond your best investment strategy could be to cut your investment exposure in stocks (also called equities) and stock funds (also called equity funds). The truth of the matter is that stocks and stock funds have been the best investment for the average investor for questionable reasons. Invest money in stocks or stock funds if you believe that our government’s efforts will create a new wave of growth in the economy, in jobs, and in corporate sales. That’s one view of stocks for 2014 and beyond, based on a fundamental view of stock investing. If you invest money in stocks or stock funds now, you could be arriving at the party late.

Invest money in stocks or stock funds if you believe that our government’s efforts will create a new wave of growth in the economy, in jobs, and in corporate sales. Do not rush out to invest money (more money) if you think higher interest rates will follow and choke economic growth.

When investors look at the apparent lack of investment opportunities out there and see equities going up they tend to want to jump on the band wagon and invest money in stocks and equity funds. In 2014 your best investment strategy may be to cut back on stock investing and opt for more safety.

Stock investing has been very profitable in the past few years. The truth of the matter is that stocks and stock funds have been the best investment for the average investor for questionable reasons. In the world of stock investing, investors want to see a growing economy, rising corporate profits and growth in corporate sales.

That’s one view of stocks for 2014 and beyond, based on a fundamental view of stock investing. If you invest money in stocks or stock funds now, you could be arriving at the party late. Only after these bear markets ended were stock funds the best investment for the average investor (for about 5 years).

This made stock investing the best investment game in town, and kept interest rates low. At that point stock investing could be a whole new ball game. Equities might not be your best investment.

Well, it’s been about 5 years now since the recession (financial crisis) was officially put to bed. The real dilemma for investors in 2014 and beyond is that there appears to be few (if any) good or best investment prospects on the horizon. Why invest money in a money market fund when they pay virtually nothing in return?