Watch out – if you have money to invest for 2013 and 2014 and think you know where to invest it. If you plan on investing money in bond funds be very careful, because you may end up watching your money evaporate. Generally the money sits in a “core” account such as a money market until you are ready to invest it in other securities. A Master’s degree in Business Administration (MBA) is a must if you want to get into a well-established firm as an investment banker. Now this electronically created money is available with the banks which they can lend to the borrowers.
Where to invest for higher returns, good income and growth if interest rates start to climb: real estate in the form of real estate equity (stock) funds. You pay for an annuity upon signing and then the insurance company repays you the amount of your investment plus the “profits” (we’ll keep this simple and not use the technical term) over a period of several (or many) years.
Since early 2009 stocks and stock funds have been the best investment options. Established investors that are on a quest to match long-term investments, index-linked liabilities and higher secure returns as compared to currently available bonds, are attracted by stable, long-term and index-linked type of assets.
Historically, when the stock market tanks investors flock to bonds, which sends bond prices higher. Where to invest money for good income: real estate funds. Indeed the original purpose of an investment bank was to raise capital and advise on mergers and acquisitions and other corporate financial strategies.
There was also tendency to concentrate formal financial institutions in urban areas thereby making it difficult to provide credit to people in the rural areas. The JSE is the largest stock exchange in Africa and has a market capitalization of more than 10 times that of all the other African markets combined.