What to Invest in?

Are you wondering what to invest in? If you have spare cash sitting around and you are wanting to put it to good use, asking what to invest in is an important question. The difficult part comes with coming up with an easy answer. With all of the people out there with different opinions, who can you trust? Do you turn to family members or major publications?

A recent article on the Wall Street Journal wrote that you should try to find investments that involves, “going off the beaten path.” In other words, the best way to secure a great investment is avoid the popular choice and look for strong investments that are not popular. While the author of this article gives great alternative options that include REIT’s and foreign currencies, this type of advice when it comes to investing can be tricky.

This type of investment advice can soon become cyclical and therefore not that extraordinary. Let me explain why. When the basis for investing becomes to do find alternative investments that offer strong returns that no one else knows about, it becomes difficult to know what is popular and what is not. If it is offers great return, wouldn’t everyone invest in these options and therefore would be the popular one?

While many think that the key to getting rich from investments is to find the needle in a haystack, the average investor can’t expect to do this. If we are honest with ourselves, there are more skilled and knowledgeable investors than ourselves. If we think we can outsmart millions of other people, we have another thing coming to us. The best path to investing is instead a moderate, well-diversified portfolio where you ascribe to the buy and hold belief. Continue to invest your money in a diversified portfolio throughout your career and most likely, this will give you the best result. You can shoot for the stars, trying to get rich quickly and lose precious money or you can play it “safe” and build wealth over time.

8 Responses to What to Invest in?

  1. Christa says:

    Agreed — great points!!

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  6. I whole-heartedly agree with you. I like what the author from the Wall Street Journal is trying to do, but if it was so easy, we’d all be rich. Encouraging people to invest in these types of alternative or risky investments is not for everyone. My fear is that people will misinterpret this information and get themselves into something they don’t understand, which is usually a losing formula. My journey to investing started by taking some extra cash and buying a mutual fund from Vanguard. Sure it was boring, but I made an okay return, it was low cost, I understood what I was doing, and it encouraged me to try out other things later on. I would keep it safe and start there.

  7. […] also for the need to generate monthly income in retirement.Wayne @ Young Family Finance writes What to Invest in? – Are you wondering what to invest in? Where to invest your money? Find out what you should not be […]

  8. 101 Centavos says:

    A medium hat tip to the WSJ for writing outside the box. Good find on the article, YFF. I took a look at Navios a couple years back, and went instead with Teekay Tankers. The div payout of either though has held steady.

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