In a jittery market, it’s sometimes easiest to do nothing

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Not only might it be a good idea to “do nothing”, it might actually give you the highest return. Sure, there may be some sort of opportunity cost, but it’s not likely to be life-shattering.

You don’t want to fight the trend, and up swimming against the stream. The best way to invest is with a smooth tailwind pushing you gradually up. Sure, an explosive move upward can be great when it happens, but chances are you’re looking at smaller returns when the overall stock market starts lurching sidewards.

Where is all the investing profit? Smart money moves faster than ever before. The stock market competes with many, many other financial instruments, which are getting more popular all the time. You can invest your money more easily these days into a dizzying array of products, so you don’t NEED to invest in stocks. Right now people are:

• 1) Investing in real estate in record proportions
• 2) Are more involved in commodities than ever before
• 3) Put money into hedge funds which do not rely on stocks for big returns

Any or all of these may be options for you, depending on your investment goals. Don’t be afraid to examine all alternatives before committing your money to one class of investment. There’s no need to use tunnel vision to achieve high returns. Cash is looking like a great place to be right now for the majority of patient investors.

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