Your 3 Best Investing Strategies for 2015

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Your 3 Best Investing Strategies for 2015
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• Racking up big investing victories over the past
  six years was easy. Now, though, the going looks
  to be getting tougher. These three strategies
  will help you stay on the path to your goals.

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1. Keep U.S. Stocks As Your Core Holding

• Stocks are expensive. The average stock in the
  SP 500 is trading at a price of 16 times this
  years estimated earnings, about 30 higher than
  the long-run average. A more conservative
  valuation gauge developed by Yale finance
  professor Robert Shiller that compares prices
  with longer-term earnings shows that stocks are
  trading at more than 50 above their average.
• Your best strategy Now is a particularly
  important time to make sure your stock allocation
  is matched to your time horizon.

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2. But Spread Your Money Widely

• With many overseas economies barely out of
  recession or dragged down by geopolitical crises,
  international equity markets have been trading at
  low valuations. And some market watchers are
  expecting a rebound over the next few years.
• Your best strategy Spread your money widely. The
  typical investor should hold 20 to 30 of his
  stock allocation in foreign equities, including
  5 in emerging markets, says Bernstein.

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3. Hold Bonds for Safety, Not for Income

• Fixed-income investors have few options right
  now. Todays rock-bottom interest rates are
  expected to move a bit higher, which may ding
  bond fund returns.
• Your best strategy If you dont want to take
  risks outside your stock portfolio, then accept
  that the role of your bond funds is to provide
  safety, not spending money.

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