The U.S. economy has rarely been as volatile as it has been over the past few years. Thankfully, growth continues, but this hasn’t stopped surging interest rates and stock tumult. As CNBC highlights, normally rock-steady government bonds reached a 4% ROI on 10-year yields recently, indicating the shaky nature of the economy and even government lending. With this in mind, it’s becoming increasingly difficult to see how wealth can be made reliably without having to engage with the guesswork of stock picks, penny stocks, or an increasingly confusing market. Amid the chaos there is, nevertheless, a way forward.
Picking an advisor
For most hobbyist investors, the best solution remains to find proper advice. Despite the chaos of the markets, finding reliable investment management in NYC, Philly, LA or any of the other financial centers remains relatively simple. According to Investopedia, cautious investors should look at the track record of investment managers and their funds to see exactly where the money is likely to land. For instance, firms that trade chiefly in index funds are likely to be a safe way to grow wealth; these ‘boring’ indexes still provide significant ROI over long-term contracts. With the help of experienced wealth managers, even more can be gained due to their knowledge of the markets and of which index funds will provide the best yields at any given time.
Whether using wealth management or investing on a solo basis, there’s also the choice of blue chip firms. Typically found in industries that remain relevant even in recession, Fool.com have highlighted a set of classic blue chip stocks that will continue to generate returns – sometimes at very pleasing rates, too. These include Apple, Walmart and Johnson & Johnson – the latter two’s position as providers of food and toiletries mean they are likely to remain essential, and likely to retain value, even in a nationwide recession. Apple, conversely, have retained a mass appeal and reputation of excellence that continues to provide ample fuel for their stock price.
Listen to the experts
If not using wealth management, it’s going to be a good idea to listen to seasoned experts in the field of investment. According to MIT Sloan, they can provide a set of principles to invest by which will then produce good yields. These principles include wariness of target date funds; looking for opportunities in ‘crisis’ stocks; retaining high-quality insurance; and looking at your portfolio holistically, and making change in the right areas. Stock market investing is a thinking man’s game that results in numbers – doing research and applying yourself closely to the market forces is important, and nobody has done it better than those stock market successes.
Volatility is an opportunity, ultimately – just one that carries higher risk. It’s a good time to hunker down and think carefully about every dollar invested, but it’s also a chance to earn some serious money.