Staying Fit
Profiting from predictions is hard. But, oh, the payoff if your forecast is correct! Imagine that two decades ago you thought online retail was the Next Big Thing. Had you invested in a bookseller called Amazon, you might be rich.
Of course, had you bought into equally promising e-tailers — and subsequent failures — such as eToys or Pets.com, you might be broke. You need insight and luck for your ideas to generate cash.
AARP Membership— $12 for your first year when you sign up for Automatic Renewal
Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine.
Do you have a vision of the future, plus the urge to profit from it?
We're here to help. All you need is some extra cash to invest — money you can afford to lose without breaking your bank account or your heart. (Consult a personal financial adviser before making investment decisions.)
We've asked investment professionals how people might invest in different individual stocks, mutual funds and exchange-traded funds (ETFs) based on the trends they foresee.
Stock Market
If you believe the stock market is in big trouble, then consider gold, cash or government bonds.
On the other hand, we don’t know how politics, technological warfare, environmental disasters or fragile economies will influence markets in the future. Major firms, including Charles Schwab, are forecasting lower returns for stocks over the next decade. Others on Wall Street have a deeper worry—that this aging bull market is a bubble just waiting to pop. In a downward spiral, retirees want to find shelter in safe havens. “Gold, cash and government securities such as Treasury bonds are typically among the safest places to be if stocks crash,” notes Patrick J. O’Hare, chief market analyst at Briefing.com.
Security
If you believe World War III is inevitable, then consider medical equipment.
Where there’s a war, there are casualties. In a sustained military engagement, companies that supply medical equipment and wound-care devices will likely see increased demand, Collins notes. These include Johnson & Johnson (JNJ), Zimmer Biomet (ZBH) and Smith & Nephew (SNN).