It’s Time to Upgrade Your Investing Toolbox
- There are different types of investment strategies that all serve specific purposes.
- Some of the most recent innovations have existed for less than 20 years.
- My colleague discovered a brand-new investment strategy that deserves your attention.
Many of you use investing tools such as mutual funds, options and exchange-traded funds (ETFs).
But these tools weren’t always around. None of them existed at the start of the 20th century.
In fact, investors have only been trading ETFs for a couple of decades.
Through the years, we’ve seen many innovations like these in the world of investing.
They can be powerful additions to your investing toolbox.
Today, I want to talk about a few of them … as well as a brand-new investment strategy that I believe deserves your attention.
Mutual Funds Give You Access to the Pros
The first mutual fund in the U.S. started in 1924. And the Boston firm that invented it, MFS Investment Management, is still in business today.
Mutual funds give small investors access to professionally managed portfolios … for a fee, of course.
Data researcher ICI reports U.S. mutual funds held $21.3 trillion of assets at the end of December. That’s up from $17.7 trillion just one year earlier.
These assets are worth more than the 2018 gross domestic product of Japan, Germany, the U.K., France, India, Italy and Brazil … combined.
Options Can Be a Lucrative Investment
Though options have been around for hundreds of years, the options trading we know today arose in the 1970s.
An options contract gives you the right to buy or sell 100 shares of a stock at a certain price over a certain time frame.
Today, options are popular investing tools. The value represented by options contracts is in the trillions of dollars.
Options can be a lucrative investment, but you have to be careful when you trade them. Educate yourself or rely on a trusted adviser.
Exchange-Traded Funds Make Investing Easier
The first ETF, the SPDR S&P 500 ETF Trust (NYSE: SPY), launched in January 1993.
ETFs are like mutual funds in many ways. Unlike mutual funds, though, they trade throughout the day like normal stocks. They generally offer lower expenses too.
ETFs can be good for the stock market. A Federal Reserve report said that ETFs make investing easier, which may encourage more people to put their money into stocks.
However, ETFs can also concentrate investment among a few asset managers. That can increase risks if one or more large firms have problems, as we saw during the financial crisis.
An Important — but Rarely Discussed — Investing Tool
You may own one or all of these types of investments.
They’re all powerful … and they all serve specific purposes.
Today, I want to let you know that my colleague Jeff Yastine has discovered a new investment strategy that I believe you should consider.
It’s a “set it and forget it” investment that simply makes people money.
And it’s easy to learn how to take advantage of it. Jeff will even show you exactly how to do so in a special presentation on Thursday, February 6.
So check the Thursday edition of Smart Profits Daily for more info. I believe you’ll be happy with what you learn.
This investment strategy has made me a lot of money over the course of my life. And it can do the same for you.
Editor, Profit Line
P.S. When Mike and Theresa Brooks were entering retirement, they used a unique investing strategy to grow a $122 stake into nearly $100,000. This same strategy made it possible for John Simpson to turn $180 into $7 million over time. And on Thursday, Jeff is going to tell you exactly how they did it. So you won’t want to miss his special presentation! And best of all, it’s completely free.