Five Places to Invest Your Money

When it comes to creating a balanced investment portfolio, a new investor—and even an experienced investor—can be overwhelmed with where to put their money. To make the best of your funds and derive a profit no matter the market, it takes an understanding of five primary markets. These include S&P 500, large and small scale stocks, international bonds, as well as real estate investment trusts. By maintaining funds invested in each of these five, no matter the market’s fluctuation you can decrease your risk. For example, stocks and bonds are considered opposites. When stocks are up, often bonds are down, and vice versa. With monies invested in both and stocks rising, you can take the money gained from stocks and invest it into bonds which are sinking at a lower rate. When the market reverses that trend in the future and bonds begin to rise, part of the profit made in bonds can be taken out and reinvested into stocks which are now at an inexpensive price. International bonds and domestic stocks cover the domestic and international fronts while real estate investment trusts cover both. With low cost indexes you can track the progress of all five.

  1. S&P 500: The S&P 500 is an index which publishes the
    prices of large-cap common stocks which are traded throughout the United States.
  2. Large common stocks: Large stocks are large securities where you
    have equity stake in a company making you an owner. Stocks are derivatives or shares of the
    company.
  3. Small common stocks: Small stocks are large securities where you
    have equity stake in a company making you an owner. Stocks are derivatives or shares of the
    company.
  4. International bonds: A bond is
    debt security which means that you
    would purchase another country’s
    debt and they would pay it back to you with interest. It is a
    type of security where you would have stake in the company as a lender.
  5. Real Estate Investment Trusts:
    Real estate investment trusts are tax
    designations for corporate
    entities which are investing in real estate. They are used to
    eliminate any corporate income taxes, providing an investment
    structure for real
    estate that mutual funds provide for stocks.

Once you’ve made your investments in each sector, be sure not to panic when you see that the market is dropping. At any given time, you will have one particular market falling and its counter-part rising. Instead of panicking, remember to move profit from the rising market into the falling market, making large purchases at a low cost and increasing your profits no matter what the outlook.

About The Author: Elias Cortez is the editor of www.TopNetbookpicks.com and provides reviews and information for netbooks computer products. You can read his latest reviews about the acerao532h and the toshiba netbook nb305 and other popular netbooks at his website.

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