A lot of big money managers have an eye on stock market 2015-2016 looking for the best investment opportunities because that’s their job – to make money in the stock market. The problem is that after six straight years of rising prices investment opportunities in the market are hard to find. Where might money managers, and you, find them?
Believe it or not, it’s probably easier for you to take advantage of the best investment opportunities in 2015 and 2016 and make money in the stock market than it is for a money manager with billion of dollars to deal with. All you need is money in a brokerage account with a discount broker and you’re in business at a cost of about $10 per trade. Your trading activity does little to affect the market price; your trades are executed swiftly and are merely a blip on a screen. Big trades (for millions) can affect the market price, can be cumbersome, and can be traced like footprints in sand.
You are not at a disadvantage, and you have a lot more potential investment opportunities and ways to make money in the stock market in 2015 and 2016 than you may be aware of. The question is: are you going to keep buying mainstream stocks that move with the market and hope that prices will continue to rise indefinitely into the future? Or, are you going to look elsewhere for opportunities in preparation of a change in market trends? Let’s look elsewhere.
By early 2015, two sectors or industries were moving contrary to the market in general and both hint that a change could be in the wind: oil and precious metals (gold and silver). Stocks in both of these industries are a popular and simple way for the average investor to make money in the stock market IF the timing is right. Keep your eyes open as the markets unfold. Oil and precious metals stocks have been falling in price while the market in general was hitting new all-time highs going into 2015. If trends change they could be some of the best investment opportunities around in 2015 or 2016.
Now, let’s get a bit more creative. The future could see rising interest rates and slower economic growth. Both could hurt future corporate earnings. Since good growth in corporate earnings has been the cornerstone of this 6-year rising market, what would happen if interest rates rise significantly and/or earnings fall? You guessed it. The major market indexes like the Dow, S&P 500 and NASDAQ could become volatile and tumble. If this happens, where are the best investment opportunities and how do you make money in the stock market?
Can you, as a small investor, make a bet in the stock market that interest rates will go up? Yes, you can by simply buying the appropriate ETF (exchange traded fund) in your brokerage account. Can you bet that the market will become more volatile? Same answer as above. Can you bet against the market in general or against specific sectors in the market and make money in the stock market if you are correct? Yep, all with ETFs.
The vast majority of investors will lose money when things change, because they don’t really understand the dynamics. Markets change, and you must keep this in mind. The best investment opportunities often occur with a change of trend. The past six years have been unusual to say the least. It is not normal for interest rates to be this low. Nor is it normal for the stock market to go up for six straight years.
The difference between the average investor and the big money guys is that the latter know that the years leading up to 2015 were unusual, and they understand market dynamics. That’s why they’re racking their brains in search of the best investment opportunities for 2015 and 2016 – just in case trends change.
It’s true that it’s always possible to make money in the stock market, but it’s certainly not easy to do when the market indexes are tumbling. Be prepared, because change could be in the wind. The best investment opportunities are always out there. Now you have some ideas as to where to look to find them in 2015 and 2016.