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| Plot of S&P Composite Real Price-Earnings Ratio and Interest Rates using data from irrationalexuberance.com/shiller_downloads/ie_data.xls (Photo credit: Wikipedia) |
In case you hadn't heard, the stock market took it's second largest plunge of the year yesterday, which was quite poor timing when most investors were seeing optimization in a sluggish economy. So where does that leave us who are fairing quite well and have money to invest? Sadly, there aren't many options at the moment. Governmental bonds have historically low interest rates, and the rates of return frankly aren't enough to keep up with inflation. The only money to be made seems to be in the money markets, but that continues to be quite risky. As they say, you want to buy your sunglasses when it's rainy, but picking the right sunglasses is the tough part. I'd suggest finding a
Chicago financial advisor to help you with picking the right stocks at this current time. Many start ups are being formed, but the risk is too hard to pick just one. That's why the best game plan at the moment is investing small amounts in many start ups, and hoping a few of them will see great numbers in the next 5 years.
