An Insight to Some Investment Ideas 2014
‘Past performance is no guarantee of future returns’. You might have heard this phrase quite a lot of time. It might also have lost its significance many a times. But now, this is a reminder for you if you are making money plans for the next year.
The difference between 2014 and 2013 money plans is – beginning of 2014 will not have “fiscal cliff”, which investors have faced in the beginning of 2013. Investors can enjoy the freedom of making plans for the coming year without worrying about the economic condition. In the upcoming year, some economic escalations are expected.
Now, the query is, will it be wise to invest in the future? Well, some investment advisors and firms have offered a range of stunning business ideas for 2014…
Future Investment will Open up Many New Paths for People
Make decisions considering the new changes in tax
Tax rate has risen to around 39.6% on income. This is applicable for income higher than $400,000. A Medicare tax of 3.8% is newly introduced on the investment income starting at the level of $200,000. However, investors might not have completely absorbed the changes in tax. If you are puzzled with the complicated tax codes, it is better you seek professional advice. Investing merely for tax is not an ideal economic decision unless you are subject to some tax issue.
Take into account the income investment afresh
The withdrawal of an amount of above $100 billion from the bond funds, people are being deprived of lots of potential income. However, this doesn’t imply that people should shift to government bonds designed for long-term. It is noticed that mutual funds comprising of high yielding bonds will work great in a strong economy. Thus, advice of experts is it will be wise to opt for short-term or middle-term bond funds.
Rebalance your financial portfolio to reflect today’s market
A prominent investment analyst, Maria Bruno, opines in this regard that your portfolio should be rebalanced, when you find that the allocation of your asset has moved away by above 5%. The general balance is supposed to be 60% stocks and 40% bonds.
Search for undervalued yet effective global brands
Japan and Europe markets have leaped over during the last year symbolizing economic recovery. You can realize the value by looking for effective global brands having little exposure in the local economy. For instance, shoe manufacturer Adidas appears to be much affordable depending on the estimation of earnings. For the next year, it is predicted that earnings growth rate of Adidas will be twice of Nike, though they are priced at the same range.
Take global economy into account while diversifying
If you are not making investment globally, you are surely missing the chance of a diversification opportunity. Experts opine that diversifying to some “strong balance-sheet nation” having good governance is advisable.
When you are making plans for investment in the coming year, seek for new opportunities. Volatility of economic situations has to be considered to reap the most from investment options. For professional advice and guidance, it is better to seek the help of investment advisors.
Author’s Bio: James Patrick is a guest blogger writing articles primarily on finance and investment. He has studied about companies like Pacific Tycoon which manages alternate investment options.
Category: Investing
