These last few wild weeks in the market have us all asking the same question: where should we be putting our money now? So We asked two of our financial advisors where they would invest today. Here are their very different answers:
Ray Lucia, RJL Wealth Management
Timber – as in trees – has consistently produced a return better than stocks and bonds with less volatility. Why? All trees need is sunlight and a little rain to grow. If the market for timber is soft, you simply don’t cut so many down and they grow about 8 percent. The next year they are worth even more. You can buy timber in the form of a public timber company or as a pure play, with a non-tradable real estate investment trust.
Jerry Lynch, JFL Consulting
Coming out of a recession, smaller companies have a tendency to do well. Buy small-cap index funds – they aren’t as unique as a play on timber, but they have shown consistent gains in the past.