Investment Strategy for 2016

In order to make your portfolio grow, your best bet is to place your money in stocks. But of course, you will need a good strategy for it to flourish, especially this coming 2016. One of these strategies is to slow down shelling out your money in equities and its funds. Why? It is because for the past 5 years, these funds have been up for at least 150% of their course and this coming year might be the time it runs its course. But despite of that fact, believe it or not, investment strategyyou could still invest your money here.

It would probably make you wonder why, especially when the risk could go high. Okay the truth is, even though the risk is high, it would still be worth it because this avenue has been proven effective by a lot of investors to still earn profit from it. This means, you won’t experience complete loss after all. For many years, investing in stocks has always been a good idea because it helps an investor’s money to grow.

It is always the goal of investors to see the economy flourish by having corporations profit from their business and having the sales of companies grow as well. Lately, companies and their profits were a result of cost cutting rather than sales profits going high. Corporations in the US don’t even want to go hire people anymore.

A solution to stimulate the economy is to have interest rates go low, as it will also help to have unemployment rates investor risk profilego down. In order for this to happen, purchasing debt securities that have longer terms should be done by the government. This is why investing in stocks is something that investors should be doing because the more stocks are invested on, the more the interest rates would go down.

The best move is to place your money in stocks knowing that your country would do something in having some new plans in the economy’s growth, which includes employment rates and increase in business sales. If you think that there’s a chance for a higher interest rates to come this coming 2016, I would suggest not putting in a lot of money for your investment, especially if you think that it would not be good for the economy.

Keep in mind that when the interest rate is high, this would have a huge affect in sales and it is not going to be in a good way. Profits in corporation would also be affected in a negative way when interest rates are high, as this would raise the cost for money lending. And in case you don’t know, corporations do a lot of that in a year.
To sum up the strategy I have for you this 2016, be careful and check first if the interest rates are high before you invest anything on any funds, bonds or stocks. Always do your research first before shelling out your savings. I’m not saying don’t invest at all, but be more cautious in investing.

How To Choose Your First Broker In Investing

Unless you’re a business or finance major, you will need the help of a broker to sort your investment, especially in handling stocks. These people will help you with the ins and outs of this business. Also, you should know that there is no way you could do this without owning a brokerage account. We’ll get to the details on how you could acquire that later, for now let’s focus on your getting your first broker.


If this is your first time, choosing your broker would be different from those who have been doing this for a long time now. You would be surprised that dealing with finding a broker is like handling and choosing the right stocks for your investment as well. That said, you must actually find the right match for you. Because if you don’t, I hate to break it to you but there’s a possibility you’ll end up penniless.

The first thing you need to know about picking the right broker is what exactly is their job description and how could they help you. You must know if you will get a regular broker or a broker-reseller. I’ll walk you through their differences.

The regular type of brokers is the ones that handle the whole investment deal with a direct client. The client will be hands-on working with them from the ground up. The other type, which are the broker-resellers are basically the middlemen dealing with a client and huge broker.

My advice is that go for a regular broker because they are more legit. There is a chance you could actually be ripped off when you deal with broker-resellers although of course, I am not saying it to generalize them, but it’s just wise to investment brokergo for a regular broker if you’re just starting here. Should you ever decide to go with a broker-seller, make sure that you know them well and that you double-check every document before making a final decision.

I would advise to also go for brokers that are linked to reputable organizations that are known in this industry. Fidelity and Scottrade are among these and they are members of the Financial Industry Regulatory Authority.

You must also be aware that there are brokers who offer their full service and there are also ones that could give you discounts. Most people take the former even they are really expensive because they literally do all the job. As the investor, you will also gain a lot more than tips and suggestions in how you would deal with your stocks if you for the one who offers full service.

Aside from the obvious fact that you must go with a broker who is trustworthy, these are among the things that you must consider before going with one. And as much as I would want to tell you that you really don’t need their help, unfortunately you do. They are like the people who handle your taxes, which means you don’t have much choice but to trust them or you will have to do it yourself.