Where to Invest in 2014

Investing has been an interesting topic in recent years. After the collapse of the market in 2008/2009, there was much skepticism and fear around the entire subject of investing. In fact, many people pulled their money from the markets altogether (which no doubt was a major contributing factor to the market collapse). However, the past couple years the stock market has roared back to what it once was. The housing marketing thankfully hasn’t returned to its pre-bubble state, but it is on the rise as well. So with lots of potential out there, where would it be smart to invest your money in 2014?

Before I write anything else though, one quick disclaimer. I’m not a financial expert or professional adviser, and anything I say is purely my opinion. Always consult an expert and weigh your options carefully before investing.

The Stock Market

The stock market has roared back from its major dip in the past few years. In fact, the last few years have been incredibly strong for it overall. If you have any money in the market right now, you’re no doubt thrilled with the results from the past year.

So what about in 2014? My personal prediction on this is that the stock market will continue to rise. Its gains may not be as dramatic as the past two years, but they will no doubt still be big. I’m personally very confident in the stock market for the next few years.

In my opinion, the biggest opportunity right now in the stock market is in buying value stocks (stocks that are trading for a low amount compared to what they’re worth). There is an entire science to this, but when done right it can be very lucrative in times of economic growth.

The Bond Market

It is no secret that the bond market is getting closer and closer to blowing up. When everyone jumped ship from the stock market, many landed in the bond market, and it was consequently pretty successful for a while. However, it is now at the point where the real estate market was at in 2008 – close to bursting.

The bond market is approaching a bubble just like anything else does. Thankfully, due to the nature of bonds it isn’t like people are going to lose millions of dollars like they did in the stock market collapse. However, the gains seen from the bond market (which are already low) may disappear.

I personally won’t be investing in the bond market for awhile, and I recommend you consider doing the same.

Real Estate

The real estate market took a serious beating during the financial crisis. However, that time has passed, and it has recovered already to an extent. The past year or so, the real estate markets in most areas have been steadily heating up, with more demand and higher prices than seen since 2008.

This is a trend that I think will continue. I personally believe that real estate is a very strong investment to have for 2014, and is in general a good investment to make. The recent collapse made people forget how much the housing market grows on average (hint: it’s huge). Real estate has always been a sound investment, and I think it will continue to be.

Commodities

After the financial crisis, prices for commodities like gold and silver skyrocketed as people wanted to have something tangible in their hands instead of stock in a company that may or may not continue to operate in the near future. We’ve already seen them decline recently, and that will likely continue. The reality is that such investments are hedges against the stock market, and as the stock market rises they will fall. I wouldn’t be buying (or selling) any commodities in 2014. However, if they get low enough in price they may be worth considering in late 2014 or 2015.

So those are some different investment options, and what I think about them for the coming year. There are a lot of possibilities out there. Hopefully I’ve helped you answer the question of where to invest in 2014. If not, there are plenty more resources out there that you can find.