Short Term Income Investments: A Comprehensive Guide
Intro
Short-term income investments are financial avenues sought after by numerous individuals aiming for quick returns. Understanding these investment options can be crucial for anyone looking to optimize their financial portfolio. Potential investors range from people just starting their financial journeys to seasoned ones looking for lucrative opportunities. In this section, we will focus on comprehending personal finances, which forms the groundwork for any successful investment strategy.
Understanding Personal Finances
Understanding personal finances is key before diving into short-term income investments. This process involves adopting sound budgeting techniques, tracking expenses, and setting clear financial goals.
Budgeting Techniques
Creating a budget helps in managing cash flow effectively. Cash-based budgeting, where expenses are tracked according to income, is one approach. Another method includes the zero-based budget, which allocates every dollar to spending or saving, ensuring no surplus. This tailored approach keeps spending in check and prepares you for future investments.
Tracking Expenses
Tracking expenses is an essential discipline. It involves documenting daily expenses to understand where money goes. Numerous applications enable tracking in real-time, making it simple to identify trends. Recognizing recurring costs can allow for the necessary adjustments to increase savings.
Setting Financial Goals
Setting realistic financial goals is important for direction. Goals can be short-term, such as saving for a holiday or paying off debt, or long-term, like saving for retirement. Goals should be SMART—Specific, Measurable, Achievable, Relevant, and Time-bound.
"Without setting financial goals, one sails without a destination."
Identifying personal objectives will not only provide motivation but will also help in determining the best investment routes to take.
Investing Strategies
Having a strong foundation in personal finances naturally leads to better investing strategies. Understanding investment basics, risk management, and diversification are all part of this process.
Prelude to Investing
Investing involves allocating resources to earn a return over time. For short-term investments, products like certificates of deposit or money market accounts might be compelling. Both options are less volatile and often yield better returns than standard savings accounts.
Risk Management
Every investment carries risk. Understanding risk tolerance is vital. Low-risk investments can provide peace of mind but may have limited returns. Conversely, high-risk investments like stocks may yield more, yet they entail the chance of losing initial capital.
Diversification
Diversification mitigates risk by spreading assets across various investment types. This approach reduces the impact of any single underperforming asset. For instance, mixing stocks with bonds can help buffer against market fluctuations.
Financial Products Overview
Understanding different financial products available can enhance investment strategies. Knowing the types of investment vehicles, benefits of savings accounts, and the implications of credit cards and loans is essential.
Types of Investment Vehicles
Investment vehicles come in various forms. These can include stocks, bonds, mutual funds, ETFs, and real estate. Each vehicle has unique characteristics, making it essential to choose wisely based on personal financial goals.
Savings Accounts
Savings accounts allow liquidity while providing interest. Although returns on regular savings accounts are lower compared to other options, they still serve as a vital component in an investor's strategy by maintaining quick access to funds.
Credit Cards and Loans
Credit cards and loans should be approached with caution. While they provide necessary funds, they also come with high-interest rates. A sound understanding of cash flow management is needed to handle these effectively, ensuring they don’t hinder investment potential.
Expert Insights and Tips
Gaining insights from financial experts can significantly benefit investment initiatives. Through proper recommendations, you can navigate market trends and develop effective tax planning strategies.
Financial Advisor Recommendations
Consulting with a financial advisor can be advantageous. Advisors can assess individual circumstances and present tailored strategies. They also help to identify which investment options are best suited for your risk profile.
Market Trends Analysis
Understanding market trends is key to making informed investment decisions. For example, keeping an eye on economic indicators, interest rates, and inflation provides insight into future movements in short-term investments.
Tax Planning Strategies
Tax planning helps maximize investment returns. Individuals should be aware of capital gains taxes and other implications related to short-term investments. Efficient planning can lead to improved overall financial health.
Through the completion of this guide, readers will find valuable information and insights into short-term income investments. By mastering personal finances and exploring diverse investment strategies, one can make informed choices and effectively engage in this dynamic financial landscape.
Understanding Short Term Income Investments
Short term income investments are pivotal for those who seek to manage their financial liquidity while also aiming for positive returns. These investments are primarily characterized by their relatively quick maturation periods, typically spanning from a few days to just under a year. Such a timeline enables investors to access their funds sooner than with long-term investments, which tend to tie up capital for extended durations. This flexibility attracts a diverse range of investors, from those who are risk-averse to more aggressive traders looking for quick gains.
Definition and Characteristics
Short term income investments primarily refer to financial instruments that generate returns within a limited timeframe. Common examples include Treasury Bills, Certificates of Deposit, and Money Market Funds. The essence of these instruments lies in their low risk and high liquidity. Unlike more volatile assets, short term income investments provide a degree of stability. Investors tend to expect lower returns compared to long-term options, but the trade-off is a more predictable cash flow and quicker access to funds when needed.
These investments generally possess certain key characteristics:
- Maturity Period: Typically, the duration is less than one year.
- Low Risk: They are usually perceived as safer investment options due to their stable nature.
- Liquidity: Investors can easily convert these assets into cash without substantial loss in value.
The simplicity and the transparent nature of short term income investments make them appealing not only to individuals but also to institutions seeking to optimize their capital management strategies.
Importance in a Financial Portfolio
Incorporating short term income investments into a financial portfolio offers several benefits. First, it plays a significant role in managing cash reserves. When unexpected expenses arise, having liquid assets readily available can prove crucial. Second, these investments can stabilize overall portfolio returns, serving as a buffer against market volatility. Especially during periods of economic uncertainty, they can contribute to balance by offsetting losses from riskier assets.
Furthermore, short term income investments can be a useful tool for achieving specific financial goals. For instance, a professional may want to save for a down payment on a home in the near future. Allocating funds into these investments ensures that the money remains accessible while still generating some level of income.
As short term interest rates fluctuate, monitoring these investments becomes even more important. Awareness of broader economic indicators allows investors to optimize returns and adjust their strategies accordingly. In summary, understanding short term income investments equips investors with essential knowledge to navigate the financial landscape, ensuring they can effectively manage their portfolios and achieve their financial objectives.
Short term income investments offer crucial flexibility and security for investors looking to maintain liquidity while still earning returns.
Types of Short Term Income Investments
Understanding the different types of short term income investments is essential for any investor looking to optimize their portfolio. This section will delve into several popular options, each with distinct characteristics and benefits. Short term income investments are designed to provide quick returns, typically within one year. They are suitable for investors seeking to maintain liquidity while generating moderate income. This exploration highlights their fundamental aspects and the considerations essential for making informed investment choices.
Treasury Bills
Treasury bills, commonly referred to as T-bills, are short-term government securities with maturities ranging from a few days to one year. The appeal of T-bills lies in their backing by the U.S. government, making them one of the safest investment vehicles. Investors purchase these bills at a discount, and upon maturity, they receive the face value. The difference between the purchase price and the face value represents the investor's return.
Investors favor T-bills for their low risk and high liquidity. Since these are short-term instruments, they provide a quick exit without significant opportunity cost. The yields usually reflect current market rates, and investors should monitor interest rates closely to gauge potential returns.
Certificates of Deposit
Certificates of Deposit (CDs) are time deposits offered by financial institutions. They typically offer a higher interest rate than regular savings accounts in exchange for locking up funds for a set term, ranging from a few months to several years. The principal investment is insured up to certain limits, which adds a layer of safety.
Investing in CDs is optimal for those who do not need immediate access to their cash. Rates can vary based on the term length and bank policies, so it is wise to shop around. Withdrawals before maturity may incur penalties, so investors must be certain about their timelines.
Money Market Funds
Money market funds pool money from multiple investors to purchase short-term, high-quality investments. This category includes T-bills, commercial paper, and other highly liquid instruments. The goal is to offer investors a safe place to invest cash while generating income. Even though they carry some risk, they typically have lower volatility compared to stocks.
These funds offer easy access to capital, usually allowing investors to withdraw funds quickly. Returns are generally higher than traditional savings accounts, making them an attractive choice for short-term strategies.
Corporate Bonds
Corporate bonds can also serve as short-term income instruments. They are issued by companies to raise funds, usually maturing in one to five years. Investors receive periodic interest payments, known as coupons, and the principal upon maturity. The risk level varies by the issuing company, making due diligence crucial.
The advantages of investing in corporate bonds include potentially higher yields compared to government securities. However, they come with elevated risks, particularly related to creditworthiness. Investors should carefully assess the financial health of the issuing company.
Short Term Mutual Funds
Short term mutual funds specifically target short-term bonds and securities. Their primary objective is to provide income with a lower level of risk than longer-term funds. These funds typically invest in bonds with maturities of one to three years and may provide returns that exceed those of traditional savings accounts.
Investors appreciate the professional management of these funds. They allow for diversification across various securities, reducing risk. It is crucial for investors to review fund performance and fees, as these can impact overall returns.
"Diversity in investment types helps in risk management and can enhance overall returns".
Each of these investment types plays a unique role in crafting a robust short-term income strategy. Understanding these variations allows investors to make informed decisions tailored to their individual financial situations.
Evaluating Risks and Returns
Evaluating risks and returns is a crucial aspect of short-term income investments. While these investments can provide quick returns, assessing their risks ensures that investors can make informed decisions aligned with their financial goals. Understanding the dynamics of risk and return will help investors gauge the potential outcomes of their investments.
Understanding Investment Risks
Investment risks are inherent in all financial ventures, particularly in short-term income investments. An investor must understand various types of risks. These include
- Market risk: This is the risk of fluctuations in market prices. Economic changes can impact the value of investments, leading to potential losses.
- Credit risk: This refers to the possibility that an issuer of a bond or other financial instrument may fail to meet its obligations. Corporations or municipalities can default, impacting returns.
- Interest rate risk: Changes in interest rates can affect the value of short-term investments. For example, when rates rise, the prices of existing bonds typically fall.
- Liquidity risk: This is the risk of not being able to sell an investment quickly without incurring a significant loss.
Each of these risks should be evaluated against the expected return. A streamlined approach to understanding risks involves thorough research and possibly consulting with financial advisors. A deeper comprehension of these factors allows for better risk management strategies.
Risk-Adjusted Returns
Evaluating risk-adjusted returns allows investors to assess the performance of their investments relative to the risks taken. The concept is centered on the idea that higher returns should come with higher risks. There are several metrics commonly used:
- Sharpe Ratio: This measures the excess return per unit of risk. A higher Sharpe ratio indicates that the investment has a better risk-adjusted return.
- Treynor Ratio: Similar to the Sharpe ratio, the Treynor ratio evaluates returns against systematic risk. This metric is useful for comparing different investments.
- Alpha: This is the measure of an investment's performance on a risk-adjusted basis. A positive alpha indicates that the investment has outperformed its benchmark index.
It is crucial to conduct this evaluation periodically. Investors should monitor their short-term income investments to ensure they align with their risk tolerance over time. This alignment can help prevent situation where an investor unknowingly takes on excessive risk.
Understanding risks and pursuing risk-adjusted returns are foundational to successful investing in short-term income investments. These evaluations not only bolster decision-making but also enhance overall portfolio performance.
Investment Strategies for Short Term Income
Investment strategies for short term income are crucial to maximize returns while managing associated risks. Crafting effective strategies involves understanding market dynamics, investor objectives, and individual risk tolerance. These strategies provide a structured approach that can enhance investment performance over a shorter time horizon.
The importance of these strategies cannot be overstated. Short term investments are sensitive to interest rate shifts and economic conditions, making it essential to remain proactive. With thoughtful planning, investors can take advantage of income-generating opportunities while ensuring liquidity and capital preservation.
Diversification Techniques
Diversification is a fundamental technique to mitigate risks in short term income investing. By spreading investments across various asset classes, such as Treasury Bills, Money Market Funds, and Corporate Bonds, investors reduce the impact of a poor performer on overall portfolio performance. Each asset class reacts differently to market conditions. For instance, Treasury Bills often perform well when economic uncertainty rises.
Some diversification methods include:
- Asset Class Diversification: Invest in a mix of financial instruments. This can include different types of bonds and cash equivalents.
- Geographical Diversification: Consider global investment opportunities to tap into markets that may perform better during certain economic cycles.
- Investment Horizon Diversification: Mix shorter-term investments with a few slightly longer-term options. This strategy allows for adaptive responses to market changes.
Maintaining a diversified portfolio is key to buffering against unexpected fluctuations in the market.
Timing and Market Conditions
Shrewd timing is integral in short term income investments. The ability to assess market conditions can significantly influence investment timing decisions. Interest rates, inflation, and economic indicators must be monitored closely. Higher interest rates might suggest moving funds into fixed-income instruments that could offer better yields.
Examples of strategic timing considerations include:
- Monetary Policy Changes: Understanding central bank policies helps anticipate changes in interest rates. A tightening policy typically suggests that income from various investments may decline.
- Seasonal Trends: Certain times of the year can influence market performance and interest rates. For instance, economic data releases often accompany higher volatility.
- Economic Data Monitoring: Employment statistics, GDP growth, and inflation reports give insight into the direction of the economy and help inform investment maneuvers.
Utilizing signals from market conditions allows investors to position their portfolios effectively.
Tax Considerations
Tax implications are a critical aspect of short term income investments. Different instruments can have varying tax treatments that influence the overall yield. For instance, interest from municipal bonds is often exempt from certain taxes, making them attractive for high-income earners.
Key tax considerations to keep in mind include:
- Short-Term Capital Gains: Income from investments held for less than one year is usually taxed at ordinary income tax rates, which can be significantly higher than long-term capital gains rates.
- Tax-Efficient Accounts: Placing investments in tax-advantaged accounts like Roth IRAs or 401(k)s can help manage tax liabilities more effectively.
- Income Tax Bracket Awareness: Understanding how investment income affects your tax bracket can inform strategy. Higher income from short-term trades could push one into a higher tax bracket, altering overall returns.
Effective tax planning is as essential as selecting the right investment instruments.
In summary, crafting solid investment strategies for short term income not only elevates potential gains but also safeguards against unpredictable market shifts. Employing diversification, timing decisions aligned with current market conditions, and careful tax planning are pivotal to optimizing performance in this fast-paced investment landscape.
Comparative Analysis of Popular Instruments
The comparative analysis of popular instruments within short term income investments is crucial for investors seeking to maximize returns while maintaining an acceptable risk level. This section illuminates the key aspects of several investment vehicles. An informed choice can significantly influence the success of an individual's financial strategy, especially in turbulent economic climates.
Yield Comparison
Yield is a primary factor when investors assess various short term instruments. Different investment options, including Treasury Bills, Certificates of Deposit, Money Market Funds, Corporate Bonds, and Short Term Mutual Funds, offer varying yield levels.
It is notable that Treasury Bills, a government-backed option, often provide lower yields compared to corporate bonds, which carry higher risk but offer potentially higher rewards.
- Treasury Bills: Typically yield around 0.5% to 2%, depending on the economic conditions.
- Certificates of Deposit: Generally offer yields ranging from 1% to 3%, influenced by the term length and financial institution.
- Money Market Funds: Usually yield between 0.5% to 1.5%, responding closely to current interest rates.
- Corporate Bonds: Can vary widely, from 2% to 5%, contingent on the company's credit rating and market dynamics.
- Short Term Mutual Funds: Generally offer yields of around 1% to 3%, depending on their underlying investments.
Understanding these yield ranges helps investors make choices aligned with their financial goals and risk tolerance levels.
Liquidity Issues
Liquidity remains a crucial consideration when evaluating short term investments. Liquidity refers to how quickly an asset can be converted into cash without significant loss in value. Each investment type comes with its own liquidity characteristics.
- Treasury Bills: Highly liquid, as they are easily transferable in the secondary market.
- Certificates of Deposit: Less liquid. Early withdrawal can incur penalties that reduce overall returns.
- Money Market Funds: Generally very liquid, allowing quick access to funds.
- Corporate Bonds: Varies in liquidity; larger companies tend to have more liquid bonds compared to smaller companies.
- Short Term Mutual Funds: Offer good liquidity, although redemption may take a few days based on the fund's policies.
Investors must weigh their need for liquidity against yield potential when choosing an investment type.
Safety and Credibility
Evaluating safety and credibility is essential in the decision-making process for short term income investment. This aspect relates to the risk of default and the historical performance of different instruments.
- Treasury Bills: Considered one of the safest investments as they are backed by the U.S. government.
- Certificates of Deposit: Insured by the FDIC up to a limit, mitigating risk for most investors.
- Money Market Funds: Generally safe but not FDIC insured. They invest in lower-risk assets, yet they still carry some risk.
- Corporate Bonds: Safety varies based on the issuing company's creditworthiness. High-rated bonds are considered safer.
- Short Term Mutual Funds: Safety largely depends on the investment strategy. Funds with conservative strategies are typically safer.
By analyzing safety and credibility, investors can make careful selections that align with their risk tolerance and financial goals.
Understanding Market Influences
Market influences play a pivotal role in shaping the landscape of short term income investments. Understanding these factors is crucial for any investor aiming to optimize their returns while managing associated risks. Market conditions are constantly changing, influenced by various elements such as economic indicators, interest rates, inflation, and global trends. Investors who grasp these dynamics can make informed decisions, aligning their strategies with prevailing conditions.
Interest Rates and Inflation
Interest rates serve as a fundamental tool for economic stability, affecting everything from consumer spending to investment choices. When interest rates are low, borrowing becomes cheaper. This often leads to an uptick in consumer spending and investment, ideally fostering economic growth. Conversely, high interest rates can suppress spending, impacting demand adversely. For short term income investments, a shifting interest rate environment can either enhance or diminish returns rapidly.
Inflation, on the other hand, erodes the purchasing power of money over time. High inflation indicates that prices are rising faster than wages, diminishing real returns on fixed income instruments. Short term investments, by nature, are influenced by inflation expectations. Investors must consider the relationship between nominal returns and the rate of inflation to assess true profitability. In this context, the importance of monitoring both interest rates and inflation cannot be overstated, as they are intrinsically connected to the overall performance of short term income investments.
Economic Indicators
Economic indicators are statistics that provide insights into the health of an economy. These indicators, which include unemployment rates, GDP growth, manufacturing indices, and consumer sentiment, shape market perceptions and investor behavior.
For example, a decreasing unemployment rate usually indicates economic strength. This can motivate investors to allocate funds towards riskier investments, while concurrently reducing interest in short term options. In contrast, a rise in unemployment could signal economic instability, prompting a flight to safety, often benefiting short term income instruments. Understanding how these indicators affect market sentiment will equip investors to better navigate their investment choices.
Global Market Trends
Global market trends highlight the interconnectedness of economies around the world. Factors such as trade agreements, geopolitical events, and global economic growth can significantly influence local market conditions. For instance, a slowdown in a major economy can lead to lower demand for exports in emerging markets, affecting their income investment landscape.
Additionally, currency fluctuations can impact the returns on international investments. Investors engaging in short term income securities must account for global influences that could alter market dynamics. Keeping track of trends in different regions will help investors tailor their portfolios according to anticipated shifts in demand and supply.
Understanding these market influences is essential for making strategic investment decisions. Ignoring them may lead to missed opportunities or unexpected losses.
Future Trends in Short Term Income Investments
Understanding future trends in short term income investments is crucial for investors looking to navigate this dynamic landscape. Developments in technology, regulatory shifts, and changing demographics can profoundly shape investment strategies. Identifying these trends helps investors capitalize on opportunities and mitigate risks. The importance of keeping abreast of such changes cannot be overstated, as they reflect both the current climate and future possibilities in investment landscapes.
Technological Innovations
Technological advancements are changing the way investors approach short term income investments. The rise of fintech has introduced new platforms that simplify investment processes. Investors can now access information and make transactions at their fingertips. For example, robo-advisors like Wealthfront and Betterment utilize algorithms to create personalized investment strategies efficiently.
The incorporation of artificial intelligence in analytics allows investors to predict market trends more accurately. Tools that utilize big data can assess risk better than traditional methods. This means investors can make more informed decisions quickly. Thus, technology enhances both the efficiency and effectiveness of investing.
"The rapid pace of technological innovations makes it essential for investors to adapt to remain competitive."
Regulatory Changes
Regulatory changes significantly impact short term income investments. Regulatory bodies, such as the Securities and Exchange Commission (SEC) in the United States, often update policies to enhance market integrity and protect investors. Recent regulations focused on transparency in financial services can optimize fund management and improve investor trust.
For instance, stricter compliance for corporations issuing bonds may increase investor confidence but could reduce the number of companies willing to issue them. Keeping informed of these regulatory updates allows investors to adjust their strategies accordingly.
Demographic Shifts in Investing Patterns
Demographic shifts are influencing how investments are approached. Younger generations tend to have different priorities and risk appetites when investing compared to their predecessors. Millennials and Gen Z are increasingly interested in sustainable investing, prompting investment products that align with their values.
This shift toward social responsibility and environmental sustainability has led to the growth of green and socially responsible investment funds. As these demographics assume more buying power, their investment choices will shape market offerings. Investment strategies must evolve to capture this growing interest in conscientious investing.
Understanding these trends helps investors anticipate changes and organize their portfolios in ways that align with emerging opportunities.
Resources for Further Exploration
Exploring short term income investments requires not just a foundational understanding but also a continual engagement with new information. The right resources can empower investors to make informed decisions, adapt to changing market conditions, and refine their strategies. It is imperative to recognize that knowledge is a powerful tool. Leveraging various types of resources can help both novice and seasoned investors stay ahead in the ever-evolving financial landscape.
Books and Articles
Books and articles serve as a cornerstone in professional development. They provide extensive insights into investing themes, market dynamics, and financial concepts. Titles focused on short term income investments can offer analytical frameworks and case studies that enhance both knowledge and skills.
Consider reading:
- "The Intelligent Investor" by Benjamin Graham
- "Common Sense on Mutual Funds" by John C. Bogle
- "The Little Book of Common Sense Investing" by John C. Bogle
In addition to these classics, periodicals like The Wall Street Journal or Financial Times regularly publish articles focused on current trends affecting markets, including short term investments. This can help investors stay informed about new regulations or shifts in investor behavior.
Online Courses and Webinars
In today's digital age, online learning provides flexibility and accessibility. Courses and webinars can break down complex topics into digestible segments. Platforms such as Coursera, Udemy, or Khan Academy offer valuable courses on investing fundamentals and risk management for different income-producing assets.
Participating in webinars also allows investors to engage directly with experts in the field. Many organizations, such as the CFA Institute, frequently host sessions that cover the latest strategies and market research.
Financial Advisory Services
For those who may find navigating short term investments daunting, financial advisory services can offer personalized guidance. These services come from certified financial planners or investment advisors with specialized knowledge in short term income investments. They can help tailor a plan based on individual goals, risk tolerance, and time horizon.
Working with an advisor can ensure that your strategy aligns well with your broader financial aspirations. This can also save time and mitigate risk, especially during turbulent market phases.
"Investing is not a game of chance; it's a game of skill."
Knowing where to look for information is critical to successfully navigating the complexities of short term income investments. By utilizing a combination of books, online resources, and expert advice, investors can enhance their understanding and improve their investment decisions.
Frequently Asked Questions
In this section, we tackle some of the most pressing inquiries regarding short term income investments. This part is crucial as it provides clarity on common concerns investors have. Addressing these questions helps demystify the concepts surrounding short term investments. Investors, whether they are new to the field or have some experience, can benefit significantly from understanding these elements. Overall, this section aims to equip readers with practical knowledge and insight necessary for informed decision-making.
What is the best short term investment?
Determining the best short term investment often depends on individual financial goals and risk tolerance. Generally, investments such as Treasury Bills, Certificates of Deposit, and Money Market Funds are commonly considered.
- Treasury Bills (T-bills) are backed by the U.S. government and considered very safe. They tend to offer lower returns compared to other options.
- Certificates of Deposit (CDs) offer fixed interest rates and are issued by banks. They require funds to be locked for a set duration, usually from a few months to several years.
- Money Market Funds provide a blend of liquidity and yield, making them a favorable choice for many investors.
In essence, the "best" investment varies from person to person. It's vital to assess risk appetite and time frame before making a choice.
How do manage risk in short term investing?
Managing risk in short term investing is essential. Investors should diversify their portfolios to avoid overconcentration in any one asset. Here are some effective strategies:
- Diversification: Spread investments across different assets. This helps mitigate losses in any single investment.
- Asset Allocation: Allocate funds according to risk tolerance, setting limits on how much to invest in riskier assets
- Regular Monitoring: Keep an eye on market conditions and adjust allocations as necessary.
In short, a well-planned approach can significantly reduce risk in short term investing. Active management and periodic reviews also enhance protection against unforeseen challenges.
Can invest during market volatility?
Investing during times of market volatility is a debated topic. While some investors might consider it risky, others see opportunities.
Here are a few points to consider:
- Opportunity to Buy Low: Market dips can present chances to buy quality investments at lower prices.
- Short-term Focus: If you are concentrating on short-term income, some volatility may not greatly affect your strategy if you are focused on bonds or CDs.
- Cautious Approach: It can be wise to stick to safer investments during uncertain times. For example, T-bills might become more appealing.
