In today’s economy where employment is no longer reliable, investing is the sure way to go. For those making a transition from the employment side into the investing world, things might be harsher and not guaranteed like getting your employment paycheck every month. You will lose on some investments while others will be profitable. This does not imply that you should become a risky investor (gambler). Self education and consulting with professionals will help make smart investments that can turn into cash flow channels for the rest of your life.
Smart investments for 2011
Precious minerals
Two things that have withstood the test of time are Gold and Silver. Gold is widely regarded as a risk free investment and the best option to paper money. It’s also good to know that Gold is not very prone to inflation hence the reason it’s referred to as “crisis or inflation hedge”. Other precious metals that also qualify as smart investments for 2011 include, Platinum and Palladium. The safest way to trade the gems are via online brokers as this reduces the risk of theft.
Stocks
Stocks will make or break an investor. When thoroughly analyzed, stocks can be very profitable. When trading stocks, you must decide if you are a fundamental long term investor or a technical short term investor.
Internet companies have been criticized over high liquidity but this offers a good chance for short term trading. It would be wise to start researching why Goldman Sachs is investing so heavily on Facebook. It’s also vital to know that currently, Facebook is worth more than eBay and Yahoo.
The world is going green
Another area worth looking into is the ‘green’ sector. It’s evident that people are now aware that our planet needs salvaging and green technology is on the rise. Smart grid is on the rise too and the CEO of General Electric is quoted saying “Smart grid might be the biggest investment of the next 50 years.” Cisco says “It’ll be 100 to 1,000 times bigger than the Internet.”
Forex Trading
For investors who have mastered to control their emotions and avoid margin calls, the Forex market can make you rich within no time. Forex trading in not for every investor and serious thought is needed before indulging in Forex trading. Forex trading involves high leverage, high profits and high losses.
In their newsletter, FXCM LLC gave “Top Forex Trading Ideas for 2011” and advised traders to go long (buy) USD and short (sell) GBP, and EUR. This hints that the “fiber” (EUR/USD) and “cable” (GBP/USD) are good combinations this year.
Real estate and bonds for the conservative investor
If you are not into sleepless night waiting for the markets to open or heavy research, real estate and bonds are a safe bet. The down side of these two is that it takes bonds time to mature while real estate might prove profitable after a couple of years. However, if you know what you are doing real estate and bonds guarantees money.
Sources:
International Business Times – The smart investment choice in 2011 will be Gold
Zdnet.com – Goldman Sachs invests in Facebook: IPO increasingly likely
Theenergyreport.com – The Smart Grid Deconstructed
Dailyfx.com [FXCM] – Top Forex Trading Ideas for 2011