Friday, December 4, 2009

Ways to make money in the market

posted by Pete Hill

With the market increasing to back up over sixty percent of where it was prior to the recession, investors are still able to make returns if done properly. The first step to investing well is to take your emotions out of the equation. In theory, you should put money into the market when no one else wants to. But that's easier said than done because people still remember what happened last time.

“Wall Street likes to think of the stock market as an emotionless discounting mechanism of future corporate earnings, but in reality, it's a creature of turbulent emotion, especially in the short term.” stocks are your best bet for gains over long periods of time. If you have a long-term goal, such as retirement, you need to tiptoe back into the stock market, if only to get returns a little above nothing.

The best bet is stocks, bonds, and money market funds. The best mix to have in this current economic condition is twenty percent in money market, thirty percent in bonds, and fifty percent in stocks.

Although the market is still hated among many investors, it is bouncing back and there is potential to make money if done cautiously.


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