In today's economic landscape, investors are being pulled in a number of different directions – large-cap stocks vs. small- or mid-caps, domestic vs. international, stocks vs. bonds, traditional investments vs. less traditional ones. These choices can be further complicated by conflicting economic data, much of which can be spun to suit any particular agenda. With all of this to contend with, how do you make decisions on how and where to invest?
Like dieting or dealing with the virus, a solid approach begins with common sense. Eating less and exercising has always been the best method for losing weight; likewise, taking reasonable precautions is critical to staying healthy during this pandemic. The same principles hold true when it comes to investing: Setting reasonable goals, taking action, and sticking to the plan generally works best, without letting all the economic noise get in the way. Here, we'll take a quick look at some of the economic data, and try to make sense of it.