After all of the bad news on increased volatility of the stock market and Europe's financial problems in these past few weeks, can we look forward to a brighter future? We can, and we most certainly will. So how exactly do we ride on the see-sawing stock market? Here are 5 simple strategies that will help investors in the upcoming weeks.
1) Continue to Invest. Over time, stock prices will become less volatile and more valuable. Despite the market's recent ups and downs, the Dow Jones Industrial Average increased by 1010.37 points over the last 3 months, which goes to show that the American economy is moving in a positive trend. America and the rest of the world weathered the brutal financial crisis in 2007; now is not the time to panic and sell your investments.
2) Sell Gold, and Then Buy Gold. This may be a silly idea to some, but investors will reap the rewards. Gold prices have approached all-time highs, and with Europe's problems, gold prices will decrease, and thus, now is the time to sell gold. When gold prices fall, buy gold again, because gold always has the natural tendency to increase in value over a long period of time because it's a highly-valued precious metal.
3) Invest in Large, Global Corporations. While the growth of small businesses is encouraging for the common man in America, large corporations with offices around the globe are staying for the long haul, and therefore investing here would be a wise move.
4) Sell European Investments NOW! With all of the financial troubles in Greece, Italy, Ireland, Portugal, and Spain, the Eurozone is currently a huge mess. Cash out now before it's too late, because bailing out half of Europe will be nearly impossible. Also, try to avoid buying stocks of companies that are directly tied to Europe. For example, Ford Motor Company's car sales in Europe will rapidly decline amidst the crisis, and thus, Ford's profits in the next quarter will be much lower than expected.
5) Invest in Dividend-Paying Stocks. Companies with divident-paying stocks in the stock market are usually financially secure. Also, who wouldn't want to share some of the companies profit's with other shareholders?
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