Investing vs. Saving: What Is the Market Telling You?

The economic times we’re currently living in might be rather unstable, but that doesn’t mean that you should get all the money you own and put it under your mattress. That would be rather ridiculous, wouldn’t it? But what should you be doing then? Should you be investing or saving your money in the bank? Well, looking at some of the economic news and market signs might give you a good idea about what the correct choice might be at any given moment.

When to Invest

So what are some of the signs that point to investments being the right choice? Well, any signs of stability indicate that investments might be on the cards. That is even more true in the current economic climate, as stability is a rare commodity that everyone is looking for. Jump in – it is almost certain that other (and bigger) players will follow as well at some point.

And since various governments are trying to affect various markets these days, you should also look at where the major spending’s will be going into. If they are likely to go into the markets that you want to invest into, then you will probably do the right thing by going in as soon as possible.

When to Stay Back

Most of us do not have enough time for following all the economic news – after all, even those who spend their entire days tracking the markets sometimes struggle to keep track of everything. The rule of thumb that you should always follow is rather simple – if you don’t know what is going on, staying back is always the right choice.

But what about the actual market signs that point to savings? Are there any? Well, there sure are. First of all, any kind of a turmoil is a sign that you should stay back, save your money, and wait for a better opportunity. Of course, we have all heard the mantra of a big turmoil being a big investment opportunity, but the truth is that those big opportunities are always scooped up by the biggest players, not by individual investors.

These days, it is also worth looking at what the governments of various countries are looking to do, since they have the potential to affect everything – from currency exchange rates to stock-markets. And spending cuts that are likely to affect what you want to invest into are definitely one of the main factors that should make you wait with your investments.

Consider Your Situation and Decide!

At the end of the day, however, market signs shouldn’t be the only factor contributing to your financial decisions. What you also need to do is to consider the specific situation you are finding yourself in. For example, you might be able to afford more risks if you have plenty of unused funds in the bank. On the other hand, your investments should be very conservative if you have no room for losses. Combine the two factors together and you should have no problems with making a well-informed decision.

About author: Hugh Tyzack is the managing director and founder of http://www.gbploans.com , which specializes in no fee guarantor loans. Since its foundation in 2008, the firm has enjoyed steady growth and is now one of the UK’s biggest providers. You can also follow Hugh directly on Twitter and Google+.