Best Investing Ideas for 2012

Posted on by Emily in Investing, Saving Money & Finances

Best Investing Ideas for 2012

As we approach the new financial year of 2012, it’s important to start thinking about some of the best and most profitable investing ideas available. It doesn’t look like the economy is about to pick up to its best anytime soon, but that doesn’t mean you can’t make lucrative investment choices. In fact, there are some great places to put your money in 2012.

It often feels like there’s nowhere safe to invest your money, but this feeling isn’t true.  I’ve made a comprehensive list of where I think the best investment decisions for 2012 lie below.

Best Investing Ideas 2012

Let’s take a look at some of the best investing ideas for 2012.

U.S. Assets

USA Today compiled a list of the best investment ideas for 2012 and this was the #1 piece of advice listed in the article. They quoted Richard Bernstein, who said about the U.S. assets matter:

“The U.S., at worst, is going to be the best house on a bad block; at best it could be a shining star.”

Buy Airline Stocks

Another great piece of investment advice for 2012 is to buy airline stocks. USA Today interviewed Ann Miletti, investment strategist, who reccomending the industry as a great investment source.

“Consolidation and shrinking seat capacity means planes are full and ticket prices are going up. The wild card is fuel prices. If fuel doesn’t spike, airline stocks can do well.”

Invest in Gold

2011 proved to be a good year for gold, one of the year’s best performing assets. It gained 15%, outperforming both U.S. and EM equities. According to Forbes:

“The yellow metal will average $1,950 an ounce, which will be bullish for equities going forward.”

Goldcorp and Barrick Gold are two companies Forbes mentions to invest in.

High Interest Savings Account

Money Market Accounts can be secure ways for you to get a return on your investment. The bank will reinvest your money into short-term securities with a solid interest rate, which can range from 0.5% to 4%. Normally these investments are liquid and FDIC insured.

Certificates of Deposit (CDs)

Talk to your bank or broker about the possibility of a CD. With set maturity dates and a locked-in interest rate, you’ll feel safe investing your money. The only potential problem is if  you withdraw your funds early as costly fees may apply.

Beating broke talks about I-Bonds as a CD alternative.

Savings Bonds

They may have low returns, but savings bonds can be one of the safest ways to invest your money. They are slow growing but also normally thought of being relatively risk-free.

Mutual Funds

Certain kinds of mutual funds are designed to be fairly risk-free investments. A fund manager will invest your money in a number of stocks and or other mutual funds. The only cost may be the fees that apply to paying your fund manager.

Best Investing Ideas 2012

Treasuries (T-Bills)

Treasury Bills or T-Bills mature in one year or less. A short-term debt obligation backed by the U.S. government, they are sold in denominations of $1,000 up to $5 million. Usually their maturity times are one month, three months or six months. An example of how this works is essentially you purchase a three month T-Bill for $9,800 and the U.S. government writes you an “IOU” for $10,000 upon its maturity. You receive all of your money back along with its appreciation in three months time. Despite the end of the $14.2 trillion debt ceiling in August, T-bills are still an option. It’s up to you whether or not you have confidence in the U.S. Treasury at the moment as the Chinese recently have expressed they do. The nation owns 8% of American debt through purchasing T-bills and have said they’re not worried about the country getting back on its financial feet.

Remember, consulting a financial advisor is always a good idea.

These are some of the best investing ideas for 2012. Hopefully you can make it a great year!

Disclaimer: The tips in this post are solely the opinion of the author and are not to be taken as professional investing advice.

Best Investing Ideas 2012

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