How To Invest Your Money In 2018Nov. You’ve heard it a thousand times: Past performance is not a guarantee of future performance. What To Invest In 2018 use several mathematical tools based on the past to forecast the direction of price moves. My tools tell me 2018 could be a challenging market environment. Yet, past performance is all we have to forecast the future.
If you play fantasy football, you make decisions for next weekend based on past performance. When hiring or promoting someone, managers make decisions based on past performance. So, it makes sense to consider the past when thinking about the future for the stock market and how to invest your money. And my tools tell me 2018 could be a challenging market environment. My 2018 Stock Market Forecast The chart below shows my 2018 forecast for the Dow Jones Industrial Average. The forecast shows the direction of the expected trend, not price levels. For prices, I expect new all-time highs for major stock market averages in the first months of 2018. This forecast is based on a combination of the recent price action and longer-term cycles. For example, one of the cycles is the presidential cycle.
This is a recurring four-year pattern related to the president’s term in office. According to a recent article in in The Wall Street Journal, the second year of a president’s term has the lowest average return. That includes data going back to 1896. This is a great example of why you shouldn’t believe everything you read in The Wall Street Journal. The 20th Amendment to the Constitution moved the presidential inauguration from March 4 to January 20.
That means the presidential cycle shifted slightly in 1937. In the chart above, I combined the presidential cycle since 1937 with other cycles and then accounted for recent market action. The result is generally a more accurate roadmap for the year ahead than simpler models. How to Invest Your Money in a Difficult Market In 2018, we should expect a difficult stock market. The chart shows a trading range is likely to develop in the first months of the year. Treat that as a short-term buying opportunity.
What To Invest In 2018 Expert Advice
2016: Outside Salesforce in San Francisco, so it looks like the big run in Bank of America stock isn’t over yet. And the next day they tumble. Whether we’re looking at their year, investors are starting to think ahead to 2018 and where to put their money to work next year.
As a contrarian play; and should do so in 2018 as well. Along with the company’s best, subscribe to our mailing list and get more actionable resources to your email inbox. Vince Martin is long shares of Exxon Mobil and Nutrisystem. If you have more time, industrial and Financial stocks have been performing poorly and are likely to continue doing so. What To Invest In 2018 certain amount of analysis is fine if it helps you find the what To Invest In 2018 investment options for your goals — i tried investing in physical real estate seven years ago and almost lost my shirt. Save more and live a richer life.
But be ready to sell quickly in September, where there is a high probability of a decline. It’s too early to tell with certainty, but the decline I expect in September could be the beginning of a bear market. A bear market beginning next fall fits with my forecast that the Federal Reserve is set to trigger a recession at its December meeting. I explained why in an earlier article. But, as I noted then, the stock market tends to climb before a recession. The roadmap confirms my Fed recession indicator. This all means that now is the time to buy stocks, with a plan to sell next year when the bull market finally ends.
What To Invest In 2018 Read on…
Over the next few weeks, I’ll go into more detail on my 2018 forecast. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
Want to share your opinion on this article? Opinions expressed by Forbes Contributors are their own. I show GenX’ers how to dominate finances and get more out of life. Nobody is telling you to pour every extra cent you have into stocks. By investing in yourself, you are improving the biggest asset you’ll ever have.
It’s the dawning of a new year and you finally have some money to invest. Perhaps you just got a raise. Or, maybe an end-of-year bonus is burning a hole in your pocket. Either way, you need to be smart about investing if you want those extra dollars to count. The problem is, you have no clue where to invest your cash. While you’re aware of the myriad investing options available, the sheer number of possibilities is overwhelming. You spend so much time analyzing your options that you wind up putting it off and never investing at all.
And eventually, the extra cash you set aside gets consumed by bills or unexpected expenses. 4 Investments You Should Absolutely Make in 2018 If you want to make sure your extra cash doesn’t disappear, you need to invest it right away. A certain amount of analysis is fine if it helps you find the right investment options for your goals, but you still need to act fast. With that in mind, I wanted to share what I believe are the four best ways to invest your excess funds in 2018. Then there are people who think the stock market is so overvalued right now that they would be crazy to jump in.
Dollar cost averaging requires us to trickle our money into investments over any length of time. Heck, it could be five years. This means that, over time, you will have a lower average share price using this method. Obviously, it’s easy to see why this would be beneficial. Now that we’ve talked about the importance of investing in the stock market, let’s talk about exactly where to invest your money. What are the best tools and vehicles we can use?
This is yet another situation where the options are overwhelming. Still, I typically suggest people get their feet wet with mutual funds or ETFs. If you have a financial advisor working on your behalf, they may be able to weed out the well-performing actively managed mutual funds from the ones that aren’t doing so great. Otherwise, you can invest in index funds, which are not actively managed but have a long history of solid returns. If you have a brokerage account already, then you may want to stick with it. Otherwise, you’ll need to find a new place to help you invest your funds. One company I always suggest is Betterment.
That means that you can invest your hard-earned money, then sit back and enjoy the returns and let them do the hard work. If you want to have more control on your investments, online brokerage firms like Ally Financial, TD Ameritrade and E-Trade make it easy to stay in charge with low fees and easy-to-use platforms. 2: Peer-to-Peer Lending A second place to stash some of your excess cash this year is in peer-to-peer lending platforms like Lending Club and Prosper. As an investor in peer-to-peer lending, you’re investing in other people and their goals. It’s comforting knowing you aren’t lending people you don’t know large sums of money.
While it may seem strange to hear a financial advisor suggest people invest in peer-to-peer lending, I’m not the only one who sees the value in these platforms. Kansas City Financial Advisor Clint Haynes told me he supports peer-to-peer lending as an alternative to the stock market for a few reasons. First, these companies make it easy to sign up and get started. 3: Real Estate In addition to the stock market and peer-to-peer lending websites, a third investment strategy to consider this year is real estate.