8 Secure Investments You Should Know About |
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7. International Stocks and Funds
By diversifying your portfolio's holdings to include international stocks or funds, you can reduce risk. Moreover, if you're not investing internationally, you are missing out on two-thirds of the world's investment opportunities. Many foreign stocks and mutual funds are listed for trade on our exchanges (they are called ADRs, or American Depository Receipts) and are priced in dollars. As such, they are influenced by fluctuations in the home currency, as well as by the usual forces of supply and demand. Relatively few brokers handle stocks that are only traded on overseas exchanges. If you want to buy, say, a Czech mutual fund, you'll need to look around for a broker.
8. A Mediterranean Cruise
Actually, any extravagance will do, and it needn't be anything more than a box of fine cigars or dinner at a four-star restaurant. The key is to take some of the profits you've sweated out of the market and use them to reward yourself. This helps to remove your investments from the abstract realm of earnings multiples and financial-page listings. Those who occasionally savor the fruits of their efforts are best able to bring discipline to their investment methods and clarity to their financial goals.
What to Do Next
Wondering where not to put your money? Here are four places where risk and reward may be in unfavorable balance.
See what Money Insider Jeff Fleming has to say about investing in bonds.
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