Most folks know where to invest money in good times, but when it appears like the sky might be falling, knowing where to invest money and how to invest it becomes a puzzle. In 2014 and 2015 good investments may be hard to find, particularly if yesterday’s good investments like stocks and bonds tank. This is simply not a prediction, but instead a “heads up.” You can’t prepare if you are not aware, so let’s take a closer consider the sky.

We all know that safe choices like money market funds and bank savings accounts don’t appear to be good investments for 2014 since they pay peanuts. But what if the sky starts falling: either interest levels ignite and/or the stock market tanks? Either way or both… where to invest money is the question of your day. Safe choices will look like good investments for parking money that must be safe.

Wall Street’s traditional answer to where to invest money: put about 60% into stocks with about 40% in bonds holding a cash reserve on the sidelines. Problem: in 2014 and 2015 losses in stocks is probably not offset by gains in bonds… as was the case for the last 30 years roughly. If interest rates soar from today’s record-low levels, neither stocks nor bonds look like good investments.

For over 30 years interest levels were falling and bonds were generally good investments. With today’s ridiculously low rates (created by our government to stimulate the economy) a rebound in interest rates is in the cards (because the government unwinds its stimulus). binomo login When that occurs, bonds won’t be where to invest money for higher interest income with relative safety. Bonds are NOT good investments when rates go up; they lose money. That is the way it works. How to invest in bonds in 2014 and 2015 if rates remove: reduce and opt for safety.

Stocks had been very good investments five years running as the year 2014 began. This was at least in part because of government stimulus and cheap money. In a sense, stocks were where to invest money because nothing looked cheap aside from money (short term interest rates were set at about one-tenth of one percent). With a gain of over 150% in five years, the downside risk in the currency markets is mounting. This begs the question of how exactly to invest profit stocks if the sky starts to look ominous.

Remember that the currency markets is actually a market of stocks, meaning that almost all stocks get hit when the market crumbles – but at least a few will be good investments. And the ultimate way to find good investments in a negative market is to watch the price action. For example, because the market climbed 30% in 2013, some gold stocks were down about 50% by early 2014. If you don’t know how to invest in or how to pick a specific gold stock… you may want to know where you can invest money to obtain a piece of this step. The answer is to invest money in gold funds and let them select the gold stocks for you.

The bottom line is that in 2014 and 2015 investors face an uphill battle, because both stocks and bonds look pricey. That presents a fresh challenge to today’s investor in search of where you can invest money. We are facing uncharted waters in this modern electronic world, where no-one really knows how exactly to invest or how to locate good investments for future years. This consists of the big investors like life insurance companies and pension funds.

My suggestion would be to take some profits in your stocks and bonds, because the tide will turn eventually or even in 2014 or 2015. Then you’ll have cash reserve, in order to take advantage of the situation as the skies darkens. Smart investors are always in search of where you can invest money next, especially when a big change of trend is in the cards. At such times, yesterday’s underperforming sectors or industries often become today’s good investments.