Now that the U.S. Federal reserve is lowering interest rates this is a great sign for borrowers and it also helps the economy, but for investors this is hell time. There are some ways however to get a decent yield. One piece of advice is to shop around for CD rates that have high yields. Nowadays in this recession market, it’s even harder to find a decent yield that pays out pretty good. Bankrate.com is a good place that offers good research tools for CD’s, money markets accounts, loans, online savings accounts and a host of other things. Tax exempt Muni bonds are a good retreating investment resource to hide under now. The important thing to remember when buying these bonds is to think of the future and get them for short term only because the economy could recover any minute.
A site I came across is called Kiva.org this is a micro lending sight for the socially conscious individual. This site sets up small loans from a minimum of $25 dollars all the way up to whatever you may desire or be comfortable with. The site caters to third world countries with entrepreneurs needing small loans to start businesses. If you are worrying about your money getting taken, then here is some reassuring evidence the site has a default rate of .14% the loans are usually repaid in 3 to 18 months. Another site I have mentioned before previously on this blog that is similar to this one is Prosper.com similar but a little more established and advanced.
Another resourceful site is called FINRA.org which stands for Financial Industry regulatory authority. The purpose of this website is to regulate security firms and stock brokers. This site proves to be very resourceful with a lot of factual evidence and tools for the financial mind.
As of press time there is a lot of turmoil in today’s market. The safe thing I think now for investors to do is to buy treasury bonds or put your money into short term bonds for a short period of time given that the market will not stay this way for ever. The market has always had its own way of bouncing back after a recession the important thing to remember I think would be to plan how you are going to weather the storm. Right now would be a very good time to purchase some stocks since right now they are on sale. You might as well say they are at discount rate now. When investing in a particular investment pick a strategy that best suits your situation, and don’t change up because of marketing conditions, If you have to then make minor adjustments if it calls for them. Continue to invest an allocated amount every month can be very beneficial as it would automatically come out of your account making it less easier effort on your behalf. If you don’t see those numbers in your account everyday then you won’t miss them.
Quote of the month: Be an observer not a reactor of your financial emotions.