I was thinking it would be easy to write this one, just get last year’s Best Investment for 2015 and be done! I say that because I think 2015 and 2016 is going to carry the same themes – US interest rate rise and USD strength, China weakness, oil weakness. Those three certainly moved the markets and everything else just seem to be “ripples”. Yes the S & P 500 ended lower this year, and if you were the “long-term investor” just waking up to take a peek at your investment, you would say, what a sleepy year! But it was not… there were steady climbs, dramatic declines and some I believe, if you know the concept you are investing, like when to do your bargain-hunting, there are still pretty good profits to be made.
So how to invest this 2016 — I think like what I said prior to 2015, we should be prepared for the volatility. This year’s rate rise will be still “data-dependent” so we have that element of suspense in the air. As a starting point on where to invest — I do have good news for people who are happy to sit back not chasing spectacular returns but want to receive steady income : utilities were top performers for 2015 – which pays roughly 4.5% in dividends per year, that would definitely be ahead of inflation (OR income from bank interest on savings) which is still not desirable anywhere in the world.
Not to forget also – those sectors I mentioned that are great for bargain-hunting in my last post. You could get income stocks, growth stocks, rate-rise-happy stocks. Article here.
My personal investing experience was greatly helped last year with having the correct mental strategies. I mean, it’s hard not to be fearful when markets drop off, it is also hard not to be fearful when it’s time to pick up beaten down stocks (lest they continue to fall) and having kids to care for while having full-on house-hunting-renovation-relocation, the right mental strategy allowed me to take the necessary action when they were needed. Yes, it’s a skill to be mastered so I am excited to be able to share more about the mental strategies that are critical for investors. So my recommended investment for 2016 is importantly on investment on ourselves, how to strengthen mental skills that would keep us focused and profitable for 2016 and beyond! Watch out for my free webinars and upcoming events. See you all soon!