Top Investment Strategies for Spring 2019: Staying Invested and Strategic Planning

As the calendar flip-flops into Spring 2019, investors have a wealth of opportunities and insights to guide their strategies. This period, known for its potential volatility and market changes, presents both challenges and opportunities.

Understanding the Value of Staying Invested

If there was a lesson to be learned in the first quarter of 2019, it was the value of staying invested. In March alone, the SP 500 rose 12% through March 28, nearly erasing the 14% decline observed in the last three months of 2018. This rebound underscores the importance of staying committed to your investment portfolio, especially during times of market turbulence.

The Cryptocurrency Surge: A Booming Blockchain Industry

More than just an investment, cryptocurrencies represent an ongoing technology and socioeconomic experiment. The blockchain space is rapidly evolving, offering new opportunities such as the Cryptobroker Cryptocurrency Investment Platform. This platform not only doubles invested cryptocurrency after 30 days but also showcases the industry's growth potential.

The industry boasts an approximate market capitalization of $280 billion, indicating its long-term sustainability. Keeping up with this industry's advancements and being an early adopter can significantly enhance your chances of benefiting from its future developments.

Spring Foliage: IRA Contributions and Beyond

Spring is also a prime time to revisit and optimize your Individual Retirement Account (IRA). The IRS allows taxpayers to make contributions to an IRA for the prior tax year up until April 15, 2019. The spike in IRA-related Google searches just before this date demonstrates the importance of understanding and maximizing IRA benefits.

Here are some tactical questions to consider regarding your IRA:

What assets are you currently invested in, and why? What fees are you paying on your investments, and are there cheaper alternatives? What's your current asset allocation (the mix of various investments) and should it be adjusted? Do you have any other accounts, such as a 401k from a former employer, that might be better suited for an IRA rollover?

Reviewing these questions will provide valuable insights into making informed decisions. While making changes to your IRA is not necessary just for the sake of it, regular evaluations can help adjust your strategy to better align with your long-term goals.

Beyond May: Making the Most of Market Tides

A well-known saying in Wall Street is, "Sell in May and go away," suggesting that investors should sell stocks in May and return to the market after September to avoid the less-active summer months. However, historical data indicates that the period from June to August is one of the strongest three-month stretches for the SP 500, with cumulative average returns of 2.9 since 1928.

For instance, combined, June through August has experienced better performance than the November to January period. This trend suggests that there may be potential opportunities to invest rather than sell in May.

Investing in the Early Days of New IPOs

The months ahead are likely to bring a surge of Initial Public Offerings (IPOs) to the market, including well-known companies like Uber and Lyft. These companies' early trading could present significant opportunities for investors. However, it's important to remember that investing in IPOs is inherently speculative and comes with potential risks such as higher trading costs and tax liabilities.

To capitalize on this trend, consider employing a strategy known as dollar-cost averaging. This involves regularly adding funds to your investments, allowing you to buy more shares when prices are lower and fewer shares when prices are higher. This method can help smooth out volatility and potentially reduce the impact of market fluctuations.

Conclusion

Spring 2019 offers a dynamic range of investment opportunities, from cryptocurrencies and blockchain technology to traditional IRA contributions and IPO investments. By following these strategic guidelines, investors can position themselves to take full advantage of the current market environment and potentially reap significant rewards.