Investing to win is something that you never can guarantee. Everyone can try it but even the best financial analysts can’t guarantee it. There are many political and unpredictable reasons which can have an influence on your return.
Investing in shares and bonds is something you have to do on the long term. Many depends on the risk you want to take. The raise of the value of your shares depends in fact from the economic rule : ask and demand.
There are certain signs which can give you the idea that certain sectors have many chance to increase but you are never sure that you will take the right decision.
Investing to win in 2007 seems more than speculating on certain shares or bonds.
At the moment I don’t have the idea that investing in bonds will give you a high return and there is also a great risk that you even lose money because the interest rate seems either to raise and that gives a negative influence on the value of your bonds. If there is certainty that the economy doesn’t grow enough anymore the Fed, who determines the interest rate on the short term, will not decrease this rate and the value of bonds will probably not raise. Of course some other factors like by example inflation has also an influence.
The oil prices decreased a lot in the beginning of this year and the value of shares became cheaper; maybe you can take the risk to invest in oil shares or alternative energy but I can’t guarantuee you that this is a good decision on the short term. I am convinced that it is a good investment on the long term.
I also have the idea that investing in shares or funds who invest in water is a good investment on the long term.
Investing in by example the company “Pfizer” is in my opinion also a good chance to reach a high return this year because previous year the value of this share decreased in my opinion too much because of a certain product. Investors drop by bad news their shares always very quickly and the value is at this moment not conform the real value. The chance is great to reach a high return this year but of course it depends of many factors. Pharmacy is in general a good investment on the long term because the ageing of the people and that gives more need to medicines for health problems which is much higher by older persons.
Remember the golden rule about investment :
– Are you a defensive or aggressive investor? If you are defensive invest only 25% in shares; are you an aggressive investor; invest 75 % in shares. The more shares the more risk you want to take and maybe you need to keep your shares longer to reach a good investment.
– Investing means a vision on the long term
– Keep enough cash or on your savings account to do the necessary purchases.
– Sell if your investment reach in a very short time a very high return.
– Buy shares when the value is not high
Remember : investing to win in 2007 is a risk. There is no certainty.