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The Best Short Term Investments Now


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 Why People Look For the Best Short Term Investments

best short term investmentsThe best short term investments are different for everyone. People look for short term investments for different reasons. In many cases, people seek short term investments during times of volatility on the market and want a safe place that they can deposit their cash until they see a stock that they think will make solid gains.

For these people, the best short term investments is often some sort of savings account, money market fund or CD at a bank. Alternatively, it will be with a very established, low-risk stock or a government bond. They will not make money as fast as they do when they successfully invest in a stock that is on the edge of a breakout, but at least their money is safe from the fluctuations in the stock market. It is also important that the investment be something that they can get out of quickly, in case the stock market becomes attractive again.

Other people seek best short term investments for making money quickly. In that case, the best short term investment might be a penny stock. These stocks are traded at just a few dollars or less and can make money very quickly due to their small size. When a one dollar stock increases just ten cents in value, that represents a ten percent return on an investment. That can happen in less than a day with penny stocks.

Examples of the Best Short Term Investments In 2011

When the market is volatile like it is now, many smart investors pull back from their stocks and put their money into bonds. They will not make a lot of money on bonds, but they will not have to worry about their money disappearing in a market crash. The best short term investments now provide a safe haven for your money while the storms of volatility upset the market.

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